Bitcoin miners’ revenue rises by 28,7% since the beginning of the year

Total revenue for the first three months, including transaction fees, amounted to $1,98 billion

04.04.2023 - 16:00

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What’s new? Revenue of bitcoin miners in Q1 2023 increased by 28,7% over Q4 2022 to $1,98 billion. According to The Block, BTCmining brought in $755,4 million to market participants in March alone, of which more than $23 million was received as transaction fees.

The Block’s data

BTC situation. From January to March the rate of the first cryptocurrency increased by 72%, from $16 500 to $28 400. As the value of the asset rose, the revenue of miners gradually increased, reaching $601 million in January, $627,1 million in February, and $755,4 million in March.

According to Blockchain.com, among industry participants, Foundry, a U.-based mining pool, has the largest share at 29,9%. It is followed by AntPool with 23,71%, and F2Pool rounds out the top three with 12,21%.

What is cryptocurrency mining

In the cryptocurrency world, mining is the process of creating blocks in a blockchain and paying rewards to people who invest their computing resources in the process

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As of April 4, 15:20 UTC, BTC is trading at $27 992, down by 0,16% in 24 hours. Meanwhile, the asset has gained 5,12% over the past week, according to Binance. Bitcoin’s mining difficulty is a record 46,84 T, with a total hashrate of 337,87 EH/s, according to aggregator BTC.com. The latter’s historical high was recorded on March 23 at 398,15 EH/s.

Hashrate is the total computational power in the bitcoin network. The mining difficulty determines the amount of computing power it takes to find a new block in the blockchain. The parameter changes every 2016 blocks, or about once every two weeks. This ensures that the time it takes to find a block is around 10 minutes.

On March 10, a solo miner mined an entire block of bitcoin, earning 6,25 BTC as well as a fee of 0,63 BTC (a total of about $137 270 at the exchange rate at the time).

Earlier, the Ministry of Finance of the Russian Federation proposed to oblige miners to declare their income. According to the draft law, in case of violation, they could face criminal penalties of up to four years in prison.

The Supreme Court of Denmark ruled that profits from BTC, including mined ones, should be taxed, while US President Joe Biden called for a 30% tax on electricity for miners in his 2024 budget plan.

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