Bitcoin miners' profits remain under pressure, with nearly 20% of mining companies falling into losses

On June 24, according to on-chain data from The Block, Bitcoin miners' revenue continues to weaken, and industry profit margins are shrinking. Currently, about 20% of miners are operating at a loss, and the network level also shows significant operational pressure.

Data shows that over the past year, miners' overall revenue has continued to decline, with the seven-day average daily revenue only around $30 million, a sharp drop from over $50 million last summer.

At the same time, their transaction fee income has nearly dried up, contributing less than $250k per day, and miners' current revenue is almost entirely supported by block subsidies.

Bitcoin's current price hovers around $60,800, significantly lower than the $78,000 mining cost estimated by JPMorgan. This inversion has lasted for five months, setting the longest record in this cycle, indicating that the traditional cost support line has completely failed.

Not only that, but market pressure has also directly transmitted to the adjustment of the network's total hashrate. Over the past six months, the beta coefficient of mining difficulty to Bitcoin price has risen to 0.62. High costs cause mining farms to start and stop equipment as the coin price fluctuates, rather than stubbornly enduring losses.

Entering the second week of June, the network's mining difficulty was reduced by 10% in one go; earlier in the first quarter of this year, a similarly large reduction occurred. A common feature is that both significant drops happened during periods when the coin price was below mining costs for an extended time.

To cope with increasingly severe financial pressure, listed mining companies cumulatively sold over 32,000 Bitcoins in the first quarter of this year, liquidating inventory assets to alleviate cash flow strain.

This forced sale of held assets reflects that miners, squeezed by both declining revenue and high costs, are facing unprecedented survival challenges.

Currently, there are still about two years until the next Bitcoin halving. Block subsidies will only continue to decrease, and fee income has been at multi-year lows for a long time. Miners' profit recovery can only rely on a price increase; otherwise, the industry's operational difficulties are hard to reverse in the short term.

#比特币矿业 #mining cost