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Record profits in March for Bitcoin miners

Photo of: Joseph Stone
by Joseph Stone

Even before the end of March, BTC miners continue to break all records. They have already collected $1.5 billion in revenue.

Since November 2020, the race for profits is on for Bitcoin miners. And yet, a halving has occurred during the year. But this halving implies a sharp decrease in the rewards per block.

But that doesn’t matter. Bitcoin miners are returning to, and even surpassing, the revenues they had in December 2017 and January 2018. The difference is significant, however. This industry had only enjoyed two banner months in that period.

Since the end of 2020, the record months have come one after the other. How? By a constant increase in sales. And March thus serves as a new record, notes The Block. The month is not yet over, however.

Bitcoin miners have already posted revenues of more than $1.5 billion for the period. The previous record, which dates back to December 2017 ($1.25 billion), is therefore eclipsed. It was, however, as early as February 2021 ($ 1.36 billion).

And contrary to the trend on the Ethereum blockchain, it’s not the inflation of transaction fees that’s driving miners’ profits. It is the rewards per block (6.25 BTC) that are generating this growth.

These rewards reached $1.36 billion in March, compared to about $148 million for fees. Nevertheless, due to the volume of activity on the Bitcoin blockchain, these fees are growing month over month. However, they are nowhere near 40% like on Ethereum.

For the big BTC mining companies, the gain is twofold. Their core business benefits directly from the rising price of the crypto-asset. But the stocks of listed miners are also benefiting.

“Our miners are incredibly optimistic about the future of mining,” Ethan Vera, co-founder of Luxor Technology, boasted a month earlier. “January and February 2021 were record months for most of them,” the executive added.

In North America, miners can finally count on a consistent influx of capital. As of Q4 2020, institutional investors were spending $500 million on bitcoin mining as a result.