Bitcoin Mining Revenues Exceeded $970 million in July

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  • During July, Bitcoin miners raked in a total of $971.83 million, of which transaction fees accounted for $27.59 million.
  • The Bitcoin mining monthly revenue was $839.09 million in June.
  • This is an indication that displaced Chinese miners are coming back online.

Data acquired from The Block Research indicates that last month, Bitcoin miners garnered over $970 million in mining revenue. That comes as Bitcoin Mining Difficulty has plunged four times in a row since mid-May.

During July, Bitcoin miners raked in a total of $971.83 million, of which transaction fees accounted for $27.59 million. In comparison, the Bitcoin mining monthly revenue was $839.09 million in June. At its peak, Bitcoin miners were earning $1.7 billion during mid-April, when the Bitcoin price recorded a new all-time high of around $65,000. During March, the Bitcoin mining monthly revenue reached its record high, delivering miners $1.75 billion in revenue in one month.

A surge in Bitcoin mining revenue is considered a bullish sign as it indicates that there is ample incentive for more miners to take part in the activity.

Bitcoin Hashrate Begins Recovering

Courtesy of China’s rigorous crackdown on crypto mining, Bitcoin hashrate dropped from its peak at around 180 EH/s during May to below 90 EH/s, a level last seen in early 2020. During this period, Bitcoin Mining Difficulty recorded a historic adjustment, plunging by more than 25% on July 3.

However, the hashrate securing Bitcoin is now slowly recovering. At the time of publication, Bitcoin hashrate is just more than 110 EH/s, suggesting that some Chinese miners have managed to successfully relocate. Moreover, the 7-day moving average of Bitcoin hashrate has escalated to above 100 EH/s.

Last month, Dave Perrill, CEO at the US Bitcoin mining facility Compute North, argued that it might take one year for Bitcoin hashrate to recover its losses. “We may not see the hash rate go back to the all-time-high level until Q2/Q3 next year. That’s my hunch,” Perrill said.

Chinese Miners Are Coming Back

Part of the Bitcoin hashrate recovery is attributed to the displaced miners successfully relocating and plugging back in their mining rigs. To give an example, the Shenzhen-based Bitcoin mining firm BIT Mining has successfully shipped a portion of its mining facility to Kazakhstan.

BIT Mining, which was formerly known as the online sports lottery firm, reportedly had more than 50,000 Bitcoin ASIC miners established in two Chinese provinces of Xinjiang and Qinghai. The company also possessed two mining plants in Sichuan. Following the crackdown, BIT Mining halted all its mining operations in the country.

However, last month, BIT Mining announced that it has shipped and plugged in more than 3,800 mining rigs with a cumulative hashrate of 172 PH/s to facilities in Kazakhstan. The firm further added that some 4,000 mining rigs have been shipped to Kazakhstan but are not still plugged in. “A further 4,033 bitcoin mining machines with a total hash rate capacity of 121 PH/s have been shipped to data centers in Kazakhstan and are awaiting deployment,” BIT Mining said.