As the crypto winter intensifies, Bitcoin (BTC), mining revenue and profitability continue to fall along with the asset’s price.
As revenue and profitability continue their slide, May was one of the most difficult months for Bitcoin miners over the past year. According to data from Blockchain.com, Bitcoin daily mining revenue dropped by as much as 27% during May according to Ycharts sourcing data.
The analytics provider reported daily revenue for BTC miners of $40.57 million on May 1. However, by the end the month it had dropped to $29.37million. On May 24, daily mining revenue fell to $22.43 million, an 11-month low.
BTC daily mining income YTD – ycharts.com
Mining revenue per day soared to an all-time high of $80 million in April 2021, but has fallen to the current level by 62%.
May was the end of this streak for miners. Since August 2021, every month has seen cumulative mining revenue exceeding $1b. Mining revenue last month: $906m
— Zack Voell (@zackvoell), June 2, 2022
Bitinfocharts reports that mining profitability, which measures daily dollars per terahash per second, is at its lowest level since October 2020. According to Bitinfocharts, mining profitability is currently $0.112 per day for 1 Th/s.
The metric has also seen a decrease of 56% since the start of the year, and is down more 75% from the 2021 highs at $0.450 per day per Th/s.
BTC mining profitability 1y bitinfocharts.com
Bitinfocharts reports that the Bitcoin network hash rate remains high at 211.82 exahashes per minute. This figure is roughly 16% lower than its May 2nd all-time record of just over 250 Eh/s.
Low profitability and high hash rates may indicate that the Bitcoin mining industry is more competitive than it was previously. Miners have always shut down their rigs in bear markets when the asset price fell and they became temporarily unprofitable.
Related: Controlling 17% of BTC’s hash rate: Report about publicly-listed mining companies
Glassnode also reported that miners to foreign exchange flows just reached a four-month peak, which suggests they might be looking to sell some to offset the declining revenue.
#Bitcoin $BTC Miners to Exchange Flow (7d MA) just reached a 4-month high of 6.188 BTC Previous 4-month high of 6.002 BTC was observed on 07 April 2022 View metric:https://t.co/WwBf5cbd33 pic.twitter.com/582pKlSeo5
— glassnode alerts (@glassnodealerts) June 1, 2022