The computational power securing the Bitcoin network has climbed to unprecedented heights, yet this surge coincides with increased Bitcoin sales from mining operations grappling with tighter financial conditions.
Early April saw Bitcoin’s network strength, or hashrate, achieve a remarkable milestone, hitting 1 sextillion hashes per second on a daily basis around April 5, based on available blockchain data. This indicates a robust and growing infrastructure dedicated to processing transactions.
[Bitcoin miner revenue (monthly)]
However, this peak in network activity contrasts sharply with the economic realities facing miners. Industry reports show that aggregate miner revenue experienced a significant decline, falling approximately 50% in March compared to the same month in the previous year, settling around $1.2 billion.
Miners primarily earn crypto through block subsidies and transaction fees. The recent halving event in April slashed the block reward to 3.125 BTC, making transaction fees a more critical income component. Unfortunately, persistently low fee levels and sometimes sparsely populated blocks are compressing profit margins.
[Number of BTC produced by public miners]
In response to these pressures, publicly listed mining companies significantly increased their Bitcoin sales. Data suggests that over 40% of the BTC produced by these miners in March was sold off, marking the most substantial sell-off rate observed since October 2024.
This trend points towards miners reacting to the financial squeeze caused by reduced per-block earnings and stagnant fee income. Some operators, like HIVE, Bitfarms, and Ionic Digital, reportedly liquidated more Bitcoin than they generated in March, while others, such as CleanSpark, appear to be modifying their holding strategies to navigate the challenging market.