Bitcoin mining revenue jumps 68.6% from the lowest-earning day of 2022
With only 2 million BTC left to be mined, mining companies see a rise in stock prices
By Shashank Bhardwaj
In less than a month, the Bitcoin (BTC) mining industry saw a 68.63 percent increase in mining revenue. Bitcoin mining revenue increased by nearly 69 percent in August compared to July. On July 13, revenue was $13.928 million, and on August 12, it was $23.488 million. Miners have been experiencing financial difficulties since the beginning of 2022. It all happened as a result of bearish sentiment in the crypto market. It had an effect on miners' crypto earnings when converted to US dollars. Investors' concerns grew as the crypto market crashed. The crypto ecosystem has also seen several breakdowns and failed investments. All of this resulted in lower returns from Bitcoin mining over the course of the year.
However, the Bitcoin ecosystem has recovered as well in many areas. These aspects include the hash rate, network difficulties, and miner payouts. Bitcoin's hash rate increased by nearly 10 per cent in the previous month, strengthening the network's resistance to double-spending attempts. The network difficulty has increased for the first time since June due to this. This means that creating a new BTC block is becoming more difficult.
During the bear market, small-time investors have increased their investment efforts. These increased efforts demonstrate their desire to fulfil their long-term goal of owning one full BTC (1 BTC). Despite high operational costs, the significant increase in mining revenue reassures Bitcoin mining as a viable business. Additionally, lower mining equipment (GPU) prices have enabled Bitcoin miners to expand their existing infrastructure. It is worth noting here that only 2 million BTC are left to be mined. The 19th millionth Bitcoin (BTC) was mined on Friday, April 1. Kjetil Hove Pettersen, the CEO of Kryptovault, said, "I believe the best days of mining are still ahead of us."
With mining revenues increasing, crypto mining companies' stock prices have reportedly increased by up to 120 per cent in the last month. Hut8 Mining Corp., Marathon Digital Holdings, and Core Scientific all revealed skyrocketing stock prices, with each performing at least 95 per cent better than June 2022. On August 11, the Q2 results revealed a 1601 per cent year-to-date increase in self-mined Bitcoin. In recent months, Bitcoin mining companies have had to deal with a number of factors that have impacted BTC production and profitability. Lower asset prices and higher energy costs were among these impediments. The problems may have arisen as a result of the combined effects of the Texas heat wave and the Russia-Ukraine conflict.
Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash