The bitcoin (BTC) mining industry faced extreme financial stress throughout the year 2022 as a prolonged bear market directly affected their earnings when translated into US dollars. However, resilient miners saw a 68.63% increase in mining revenue within a month for the year’s lowest mining revenue day, June 13.
Over the year, revenue from bitcoin mining has declined, as a result of a number of factors centered around investor sentiment – driven by market crashes, ecosystem collapse and stress created by loss-making investments. Cutting through the noise, the bitcoin ecosystem recovered in several 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 August 12. The significant increase in mining revenue reassures bitcoin mining as a viable business despite the high operating cost. Furthermore, low mining equipment (GPU) prices have allowed BTC miners to expand their existing infrastructure as they pursue mining past 2 million BTC.
Along with mining revenue, bitcoin’s hash rate has risen by more than 10% over the past month, adding to the network’s resilience against double-spend attacks. However, as a result, the difficulty of the network – how difficult it is to mine a new BTC block – has increased for the first time since June.
related: BTC mining stocks double in a month as production ramps up
Reflecting positive results in the bitcoin network, crypto mining companies reported a surge in stock prices last month.
Crypto mining companies including Hut8 Mining Corp., Marathon Digital Holdings and Core Scientific revealed skyrocketing stock prices, each outperforming at least 95% as of June 2022.
However, all three companies posted extensive losses, driven by losses on their crypto holdings.