Bitcoin mining revenue mirrors 2021 lows, right before BTC breached $69K

After one and a quarter years, Bitcoin (BTC), reached the $20,000 mark. This was after mining — the most crucial job in the ecosystem — became a costly affair. If history repeats itself, BTC investors could witness another bull run that helped Bitcoin hit $69,000.

Changes in Bitcoin prices directly impact miners’ income. They earn transaction fees and fixed block rewards in Bitcoin for running their mining operations. The total mining revenue fell below $20 million in June 2022. Blockchain.com data recorded the lowest drop of $14.401 millions on June 17.

Over time, total revenue from miners. Source: blockchain.com

The recent drop in Bitcoin mining revenue was last seen a year ago when the total value plummeted to $13.065million on June 27, 2021. This was back when BTC traded for roughly $34,000. The following five-month-long bull run was Bitcoin’s epic, five-month-long bull run. This was supported by crypto-friendly regulations around the world and El Salvador’s acceptance of Bitcoin.

Although mixed opinions about the recovery of crypto ecosystem are evident, small-time investors have increased their investment efforts during the bear market to fulfill their long-term dream to own one BTC (1 BTC) despite mixed sentiments. The Bitcoin ecosystem is currently being held back by global recession, geopolitical tensions and falling crypto economies like Terra, as well as the ongoing COVID-19 pandemic.

Monthly operating cash flow vs. mine revenue. Source: Arcane Crypto

Arcane Crypto, a crypto-focused financial service firm, shared a report that showed the potential for several public Bitcoin miners in surviving the current bear market. Bitcoin miners’ survival depends on the delicate balance between revenue and operating cash flow.

According to the report, Argo and CleanSpark are the most well-positioned miners to support the crypto winter. Core, a major player, has almost matched its total revenue to its operational costs.

Related: Compass Mining is reportedly unable to pay its power bill and loses its facility

Compass Mining, a Maine-based host company that hosts Bitcoin mining hardware, lost one of its Maine-based facilities due to inability to pay its electricity bills.

@dynamics2k terminated the @compass_mining facility hosting arrangement in Maine effective June 14th for failing to pay power consumption fees 6 late payments and 3 non payments. @MiningScandals pic.twitter.com/cSfnWMmqTY
— DynamicsMining (@DynamicsMining) June 27, 2022

Dynamics Mining, owner of the mine hosting facility, claimed that Compass Mining owes six late payments and three nonpayments for utility bills and hosting fees. He stated, “All you had to do was pay $250,000 for three months of power consumption.”

https://cointelegraph.com/news/bitcoin-mining-revenue-mirrors-2021-lows-right-before-btc-breached-69k