Bitcoin’s recent surge to break its previous all-time high price, reaching over $69,000, has sparked a significant increase in transaction volume on the network. As a result, miners are capitalizing on the heightened activity, leading to a notable rise in Bitcoin miner revenue.
Data from The Block reveals that the seven-day moving average of transaction volume on the Bitcoin network has soared to its highest level since September 2022, marking a staggering 18-month high.
The upswing in transaction volume has resulted in a proportional increase in Bitcoin miner earnings. Presently, the seven-day moving average of miner revenue is $65.4 million, closely approaching the previous all-time peak of $67.2 million observed in May 2021.
Attributed to the price surge, the triumph of spot Bitcoin ETFs in the United States is acknowledged, but another noteworthy development on the horizon is Bitcoin’s imminent halving, expected in approximately 40 days around April 19th. Traditionally perceived as a bullish occurrence for Bitcoin’s value, the halving entails a 50% reduction in the reward granted to miners.
Bitcoin also recently attained its highest mining difficulty level yet, indicating a significant increase in the computational cost of mining a Bitcoin block over the past 12 months. However, following the halving, the difficulty level may decrease as less efficient miners exit the network due to reduced profitability.
Mining companies have been investing heavily in new equipment, with over $1 billion spent since February 2023, according to Bloomberg. Energy consumption by miners has also surged, reaching a record rate, with a 33% increase compared to the same period last year.
In addition to acquiring machines, mining companies face challenges in securing affordable and reliable sources of electricity. While Texas remains a popular destination for Bitcoin miners, others, notably Chinese firms, are exploring opportunities in regions like Ethiopia.
Bloomberg reports that companies like CleanSpark and Riot have each invested over $400 million in new mining equipment. Furthermore, one source cited in the report mentioned a company with mining machines valued at “$350 million or $400 million” but facing challenges in finding suitable locations for them.