Bitcoin mining revenue and profitability have been declining this year along with the asset price as the crypto winter deepens.
May has been one of the worst months for bitcoin miners over the past year as revenue and profitability continue to decline. Bitcoin daily mining revenue fell by up to 27% in May, according to data from ycharts, which sourced data from Blockchain.com.
On May 1, the analytics provider reported daily revenue of $40.57 million for BTC miners, but that fell to $29.37 million by the end of the month. Daily mining revenue hit an eleven-month low of $22.43 million on May 24.
Daily mining revenue peaked at around $80 million in April 2021, but has since dropped 62% to its current level.
May the streak ended for the miners.
Cumulative mining revenues have seen upwards of $1b each month since August 2021.
Last month’s mining revenue: $906m— Zack Voell (@zackvoell) 2 June 2022
According to Bitinfocharts, mining profitability, which is a measure of daily dollars per terash per second, has hit its lowest level since October 2020. The crypto metrics provider currently reports a mining profitability of 0.112 USD/day for 1 THash/s.
Furthermore, the metric has seen a 56% drop since the start of the year and is down more than 75% since its 2021 high of 0.450 USD/day per TH/s.
According to Bitinfocharts, the bitcoin network hash rate remains high, although the current daily average is 211.82 Exahashes per second. This figure is down about 16% from its all-time high of 250 EH/s on May 2.
High hashrate but low profitability may indicate that there is a far higher level of competition in the bitcoin mining sector than ever before. In earlier bear markets, miners downsized their rigs as the asset price fell and operations became temporarily unprofitable.
related: 17% Control of BTC Hash Rate: Report on Publicly Listed Mining Firms
Additionally, according to Glassnode, miners to exchange inflows have reached a four-month high, suggesting they are preparing to sell some to cover falling revenue.
Last 4 month high of 6.002 BTC was seen on 07 Apr 2022
View metrics: https://t.co/WwBf5cbd33 pic.twitter.com/582pKlSeo5— glassnode alerts (@glassnodealerts) 1 June 2022