Over the past 30 days, the figure has averaged $27,34 million

​BTC miners’ daily income reaches a 10-month high

18.04.2023 - 12:55

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3 min

What’s new? The first cryptocurrency crossing the $30 000 mark, combined with falling electricity prices in the United States, has led to increased profitability of mining companies. According to the Reuters news agency, the average daily income of bitcoin miners rose to $27,34 million in 30 days, the highest since June 2022. However, the profits of cryptocurrency miners are still well below their peak of $61,2 million recorded in November 2021.

News on the Reuters website

Mining companies’ situation. Reaching the $27,34 million mark helped miners avoid bankruptcy, as the figure was between $15 million and $21 million for most of the second half of 2022.

According to Jaran Mellerud, an analyst at BTC mining services provider Luxor, miners’ debt-to-equity ratios now look positive, and most companies should have no trouble paying back their loans. For example, the debt-to-equity ratio of miner Marathon Digital has dropped from 2 to 0,5 since the beginning of this year, while Greenidge Generation has gone from 11,7 to 5,8 to 5,8. Marathon and Riot Platforms stock values have more than tripled this year, with Valkyrie Bitcoin Miners ETF securities up 162% and Greenidge up 137%.

Buying electricity still accounts for the bulk of miners’ operating expenses. But lower prices, especially in the United States, have eased the pressure on companies and caused the cost of electricity to produce a single bitcoin to drop by about 40% since late last year.

Russia for the first time ranks second in the world in terms of mining capacity

Russia for the first time ranks second in the world in terms of mining capacity

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Despite the overall improvement in operating conditions, many miners continue to struggle. According to Mellerud, the rise in bitcoin has given these companies time, but a drop in the BTC price to $20 000 would be devastating for them.

In Q1, bitcoin miners’ income increased by 28,7% from Q4 2022 to $1,98 billion. BTC mining brought in $755,4 million in March alone, with more than $23 million of that coming in transaction fees.

As of April 18, 13:00 UTC, BTC is trading at $30 338 on Binance, having added 2,75% in a day. The weekly growth of the asset, according to aggregator CoinGecko, amounted to 2,4%. Bitcoin’s mining difficulty is 47,89 T, with a total hashrate of 355,17 EH/s, according to aggregator BTC.com.

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