Record Bitcoin mining revenues

As Bitcoin prices continue to rally, Bitcoin miners’ daily earnings have also hit an all-time high. As the price of the largest cryptocurrency asset continues to trade at record levels, Bitcoin miners’ earnings have reached an all-time high last week. According to data from CryptoQuant, daily miner revenue reached $78.6 million on March 7, surpassing the peak set in April 2021 during the last crypto bull market. Bitcoin miners earn money from fees paid to them by users, as well as new coins given to them for verifying transactions and adding them to the blockchain network. The increase in miner revenues comes amid Bitcoin’s 70% rise so far this year. On Monday, Bitcoin had reached a record high of close to $73,000. After a prolonged decline in 2022 linked to a series of crypto scandals and bankruptcies, the price of Bitcoin began to rise last year, gaining momentum from the net inflow of approximately $9.5 billion into U.S. spot Bitcoin Exchange-Traded Funds launched on January 11. Bitcoin’s April halving, which will cut miner earnings in half and reduce the coin’s supply growth, has also encouraged expectations for higher prices. For miners, it represents a marked return from the depths of crypto winter, when some were driven to bankruptcy. For example, the Valkyrie Bitcoin Miners ETF, which includes companies such as CleanSpark Inc. and Marathon Digital Holdings Inc., has more than doubled in the past 12 months. According to Bloomberg, 13 of the largest mining companies have placed orders for more than $1 billion worth of special-purpose computers since February 2023.