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Bitcoin halving post‑mortem (19 Apr 2024) – miners’ revenue health check

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The Bitcoin halving on April 20, 2024, reduced mining rewards from 6.25 BTC to 3.125 BTC per block, significantly impacting miners' revenues. Here's an overview of the post-halving landscape:




💸 Revenue Decline and Stabilization

Immediately following the halving, daily mining revenues dropped from approximately $6 million to under $3 million, marking a 50% reduction in block rewards. However, by Q4 2024, revenues rebounded to $3.7 billion—a 42% increase from the previous quarter—and stabilized around $3.6 billion in Q1 2025, indicating a recovery in miners' income. 


⚙️ Operational Adjustments by Miners

In response to reduced rewards, miners implemented various strategies:

Bit Digital: Mined 119.3 BTC in April 2024, a 9.6% decrease from the previous month, and maintained a 97% utilization rate. 

Bitfarms: Produced 269 BTC in April, a 2.8% daily rate reduction, while increasing its hash rate by 7% to 7.0 EH/s. 

Core Scientific: Mined 57.3 BTC within 24 hours post-halving, up from an average of 30 BTC per day pre-halving. 


These adjustments highlight efforts to maintain profitability amid decreased rewards.


🏭 Industry Consolidation and Cost Pressures

The halving intensified industry consolidation, favoring larger miners with lower production costs. Post-halving, the average production cost per BTC was approximately $37,856, with top miners facing all-in cash costs around $45,000 per BTC. Smaller miners with higher operational costs faced challenges, leading to a shift in market share toward more efficient operations.



🔄 Diversification into AI and HPC

To offset reduced mining revenues, some miners diversified into high-performance computing (HPC) and AI sectors:

Bit Digital: Expanded its HPC operations, generating $4.1 million in revenue in April 2024, with projections to reach $100 million annually. 

Core Scientific: Entered a $4.7 billion, 12-year deal with AI cloud provider CoreWeave, leveraging its data center infrastructure for AI workloads. 


These moves illustrate a strategic pivot to capitalize on the growing demand for AI and HPC services.


📈 Outlook

While the 2024 halving posed significant challenges, miners' adaptive strategies—ranging from operational efficiencies to diversification—have facilitated a degree of revenue stabilization. The industry's resilience suggests a capacity to navigate the cyclical nature of Bitcoin's economic model.



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