Bitcoin Mining Revenue On The Rise: Miners Record $64M In A Single Day
Bitcoin miners earned over $64.386 million in daily revenue on March 18 – the highest level in the coin’s history, according to data from blockchain.com.
What Happened: The recent price rally to $61,000 has led Bitcoin mining operations to be an incredibly lucrative opportunity for those involved in the space.
Earlier today, Tyler Page, CEO of mining company Cipher Mining, told Yahoo Finance that the mining business was vital to the success of the network overall.
“Miners validate transactions and they also bring new supply of bitcoins onto the market. That’s our business, helping that infrastructure survive and grow.”
Why It Matters: Miner revenue comes from the “block reward” that they earn after successfully validating a transaction on the Bitcoin blockchain, as well as transaction fees on the network. Since the block reward is paid in Bitcoin, the digital asset’s price movement plays an important role in mining operations.
While the share price of mining stocks like Marathon Digital Holdings (NASDAQ:MARA) has rallied over 800% since the beginning of Bitcoin’s bull run in Dec. 2020, the stock fell over 11% after the company released its latest financial results.
The company reported a net loss of $10.4 million for the year ended Dec. 31, 2020, which threw off some investors who expected a more solid financial performance.
The discrepancy in its reported earnings can be explained in part by the fact that Bitcoin miners only recognize revenue when selling the Bitcoin earned on exchanges.
The company last sold Bitcoin on Oct. 21, 2020, and since then, has been accumulating or “hodling” all Bitcoin generated, they said in a press release.
Price Action: Bitcoin has traded in and around $58,000 after touching a high of $61,578 earlier this week. At press time, the price of the digital asset was $58,640, up 1.30% in the past 24-hours.
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