On Nov. 12, the Bitcoin mining community recorded its annual all-time high (ATH), earning more than $44 million in block rewards and transaction fees. This achievement indicates the recovery and resilience of the mining sector, which has experienced many challenges in the past months.
Bitcoin miners generate most of their revenue from rewards for confirming BTC transactions and creating new blocks using mining rigs, which are sophisticated computing devices. Besides transaction fees, miners currently earn 6.25 BTC for each successful block creation.
The daily mining rewards exceeded $44 million for the first time in 19 months, according to data from blockchain.com.
The increase comes as BTC hits a new annual high of over $37k per token. Speculations about the approval of a Bitcoin exchange-traded fund (ETF) primarily drove the price of BTC higher. While the US SEC previously handled approvals with strict caution, experts say the regulator has now softened in its approach. At the time of writing, BTC is trading at $36,350, down 1.2% in the last 24 hours, according to data from CoinMarketCap.
A number of factors have contributed to the decline in Bitcoin miners’ earnings in recent months. These include a prolonged bear market, negative investor sentiment surrounding scams and ecosystem collapses, and governments’ restrictive regulations hindering the free transaction of BTC. However, 2023 witnessed an overall trend reversal as crypto entrepreneurs assumed control of the situation and helped restore investor confidence.
Growing Interest Day by Day
Bitcoin mining firm Marathon Digital Holdings experienced a revenue increase of 670% in the third quarter of 2023 compared to the previous year.
The company stated:
“Revenues were $97.8 million for the quarter, significantly above third quarter 2022 revenues of $12.7 million, as a 467% increase in bitcoin production was amplified by 32% higher average bitcoin prices during the current year period.”
Countries, along with individual miners and companies, are also participating in mining to enhance the security of the BTC network. According to a recent report, Bhutan, an Asian country, has been mining BTC utilizing hydroelectric power since April 2019, when BTC was valued at $5,000.
Moreover, the country is negotiating with Nasdaq-listed mining firm Bitdeer to secure 100 megawatts of power for mining. This partnership would increase Bitdeer’s mining capacity by approximately 12%.