Bitcoin miner revenue will drop to $6.7 million per day if prices hold steady after subsidy halving
April 13, 2020, 11:37AM EDT
1 min read
Bitcoin miners are on the cusp of seeing their revenue fall by half after the network's block reward subsidy is cut next month.
The scheduled reduction will see bitcoin's block reward fall from 12.5 BTC to 6.25 BTC. Current estimates indicate that the halving will occur on May 12th or 13th, though this date could shift depending on the frequency of block production leading up to that point.
And as The Block's Larry Cermak noted in a column published Monday, miners currently make about $13.4 million a day in terms of revenue (profits depend on the cost of electricity, labor and other expenses).
But after the halving – and if prices remain about the same in the wake of it – miner revenue will drop to $6.7 million per day.
Source: Coin Metrics, The Block
The implications of this are significant for the financial health of miners. Those running inefficient hardware will face increasing pressure, especially those walloped by recent market gyrations. On the other hand, miners with healthier financial outlooks – in particular the businesses able to secure and stand up more efficient hardware – will likely find themselves in a more competitive position.