Summary
TLDR: Bitcoin mining businesses made over $2 billion in revenue in March, with $85 million from transaction fees and $1.93 billion from block subsidies. The upcoming halving event will cut block subsidies in half, potentially impacting miner profits. ETFs bought more bitcoins than miners produced, leading to increased competition for Bitcoin. If Bitcoin’s price increases, miners may still see profits despite reduced block subsidies.
Key Points
1. Bitcoin mining businesses generated over $2 billion in revenue in March, the highest ever recorded, surpassing the previous record set in May 2021.
2. The revenue came from a combination of transaction fees (around $85 million) and block subsidies (around $1.93 billion), with the block subsidy set to halve from 6.25 bitcoins to 3.125 bitcoins after the upcoming halving event in April.
3. Higher network activity, increasing bitcoin prices, and the upcoming halving event contributed to the bumper revenues for miners in March, with leading mining pools like Foundry and AntPool capturing a significant portion of the monthly Bitcoin supply.