Bitcoin mining revenue jumps 68.6% from the lowest-earning day of 2022
The Bitcoin (BTC) mining industry endured immense financial stress throughout the year 2022 as a prolonged bear market directly impacted their earnings when translated to the U.S. dollar. However, miners resilient to the year’s lowest mining revenue day, June 13, witnessed a 68.63% increase in mining revenue within a month.
Over the year, revenue from Bitcoin mining dropped due to a multitude of factors centered around investor sentiment — driven by tensions arising from market crashes, ecosystem collapses and loss-making investments. Cutting through the noise, the Bitcoin ecosystem recovered across numerous determinants, including miners’ revenue in dollars, network difficulty and hash rate.
Data from blockchain.com confirms that BTC mining revenue jumped nearly 69% in one month — from $13.928 million on July 13 to $23.488 million on Aug. 12. The significant increase in mining revenue reassures Bitcoin mining as a viable business despite high operational costs. In addition, lower mining equipment (GPU) prices have allowed BTC miners to expand their existing infrastructure as they pursue mining the last 2 million BTC.
Alongside mining revenue, Bitcoin’s hash rate grew over 10% over the last month, adding to the network’s resilience against double-spending attacks. However, as a result, network difficulty — a measure of how difficult it is to mine a new BTC block — increased for the first time since June.
Mirroring the positive outcomes across the Bitcoin network, crypto mining companies reported increased stock prices over the last month.
Crypto mining companies, including Hut8 Mining Corp., Marathon Digital Holdings and Core Scientific, revealed skyrocketing stock prices, each performing at least 95% better than June 2022.
All three companies, however, posted widened losses, driven by impairment losses on their crypto holdings.