TL;DR Breakdown:
- Bitcoin miners generated over $1.4 billion in revenue last month, mostly from block subsidies.
- On-chain data shows miners are accumulating Bitcoin again.
The Block Crypto Data has revealed that Bitcoin miners generated about $1.4 billion in revenue throughout August. The revenue consists of block rewards (6.25 BTC) paid to miners and transaction fees. Interestingly, miners are holding more BTCs than they are spending, according to on-chain data from Glassnode.
Bitcoin miners gained $1.3B in subsidy
Bitcoin miners gained the most from block rewards. According to the data, a total of $1.39 billion worth of Bitcoin were awarded to miners for block creation throughout last month. They only made $18.72 million from transaction fees. The revenue in August accounts for a 45 percent increase from the previous month.
In July, Bitcoin miners only generated $944.24 million from block subsidy and $27.59 million from transaction fees – a total of $971.83 million. The decline in block subsidy can be related to the Bitcoin mining ban in China, which significantly affected the overall hash power on the BTC network.
Miners are still HODLing Bitcoin
Following the incident in China, the Bitcoin hashrate declined to record levels because the country housed the most Bitcoin mining hashrate. The development also affected Miners’ Net Position Change negatively, as they had to sell more Bitcoin to migrate to other jurisdictions.
Bitcoin hashrate is back up. As of September 1, the network had about 127.25 million terahashes per second (TH/s), which is far better than the 84.73 million TH/s recorded on July 3.
The “China Ban” sell-offs with Bitcoin miners lasted for about one month. Since then, the Net Position Change has remained positive. This means that miners are now accumulating more Bitcoins than they are selling. This is positive for Bitcoin price, as there will be fewer deposits to exchanges from miners.
From Zero to Web3 Pro: Your 90-Day Career Launch Plan
