Due to increased mining difficulty, August's income fell to $827.56 million, the lowest since September 2023.
This marks a 57% drop from March's peak, highlighting growing challenges in the mining sector.
Wall Street
Bitcoin (BTC) miners faced their toughest month of the year in August, with
revenues plummeting to levels not seen since September 2023. The downturn
highlights the growing challenges in the cryptocurrency mining sector, as
increased competition and technical hurdles continue to squeeze profit margins.
Bitcoin Mining Revenue
Slumps to 11-Month Low
According
to data from analytics
firm Bitbo, miners' revenue for August totaled $827.56 million,
marking a significant 10.5% decrease from July's $927.35 million. This figure
represents a staggering 57% drop from the 2024 peak of $1.93 billion recorded
in March, coinciding with Bitcoin's all-time high of over $73,500.
The decline
in revenue comes despite Bitcoin's current trading price of $57,315, more than
double its value from the previous low-revenue period in September 2023.
Industry experts attribute this paradox to a combination of factors, including
reduced transaction volumes and a substantial increase in mining difficulty.
“During the
second quarter of 2024, our BTC production was impacted by unexpected equipment
failures and transmission line maintenance at the Ellendale site operated by
Applied Digital, increased global hash rate, and the April halving event,” said
Fred Thiel, CEO of publicly traded miner Marathon Digital Holdings. The
company's revenue for the second quarter was
$145.1 million, missing the FactSet estimate of $157.9 million.
August saw
mining difficulty reach an all-time high of 89.47 trillion, up from 86.87
trillion in July. This increase in difficulty, coupled with a slight drop in
the number of mined Bitcoins from 14,725 in July to 13,843, has
created a perfect storm for miners.
Transaction
fees, which typically provide a buffer against reduced block rewards, have also
failed to compensate for the shortfall. The median fees made up just 2% of
block rewards in August, while daily confirmed transactions averaged 594,871 by
the end of the month, down from a peak of 631,648 on July 31.
HPC and AI as Alternative
Revenue Streams
In response
to these challenges, some miners are exploring alternative revenue streams.
Cindy Feng, Founder of BitcoinMiningStock.io, an analytics service with data on
publicly listed Bitcoin miners, points to the main direction being the support
of resource-intensive artificial intelligence (AI) and high-performance
computing (HPC).
“When
it comes to embracing HPC and AI hosting, a few miners stand out,” commented
Feng. Core Scientific (CORZ), Iris Energy (IREN), and Bit Digital (BTBT) have
been making headlines, while others like Hut 8 (HUT), TeraWulf (WULF), and
Bitdeer (BTDR) have been quieter on this front.
We also
wrote about this trend on Finance Magnates. According to an analysis by
VanEck's head of digital assets research, Matthew Sigel, estimates that this
strategic pivot could unlock $38 billion in value for mining companies by 2027.
“AI
companies need energy, and Bitcoin miners have it,” commented
Sigel. “As the market values the growing AI/HPC data center market, access
to power—especially in the near term—is commanding a premium.”
Wall Street
Bitcoin (BTC) miners faced their toughest month of the year in August, with
revenues plummeting to levels not seen since September 2023. The downturn
highlights the growing challenges in the cryptocurrency mining sector, as
increased competition and technical hurdles continue to squeeze profit margins.
Bitcoin Mining Revenue
Slumps to 11-Month Low
According
to data from analytics
firm Bitbo, miners' revenue for August totaled $827.56 million,
marking a significant 10.5% decrease from July's $927.35 million. This figure
represents a staggering 57% drop from the 2024 peak of $1.93 billion recorded
in March, coinciding with Bitcoin's all-time high of over $73,500.
The decline
in revenue comes despite Bitcoin's current trading price of $57,315, more than
double its value from the previous low-revenue period in September 2023.
Industry experts attribute this paradox to a combination of factors, including
reduced transaction volumes and a substantial increase in mining difficulty.
“During the
second quarter of 2024, our BTC production was impacted by unexpected equipment
failures and transmission line maintenance at the Ellendale site operated by
Applied Digital, increased global hash rate, and the April halving event,” said
Fred Thiel, CEO of publicly traded miner Marathon Digital Holdings. The
company's revenue for the second quarter was
$145.1 million, missing the FactSet estimate of $157.9 million.
August saw
mining difficulty reach an all-time high of 89.47 trillion, up from 86.87
trillion in July. This increase in difficulty, coupled with a slight drop in
the number of mined Bitcoins from 14,725 in July to 13,843, has
created a perfect storm for miners.
Transaction
fees, which typically provide a buffer against reduced block rewards, have also
failed to compensate for the shortfall. The median fees made up just 2% of
block rewards in August, while daily confirmed transactions averaged 594,871 by
the end of the month, down from a peak of 631,648 on July 31.
HPC and AI as Alternative
Revenue Streams
In response
to these challenges, some miners are exploring alternative revenue streams.
Cindy Feng, Founder of BitcoinMiningStock.io, an analytics service with data on
publicly listed Bitcoin miners, points to the main direction being the support
of resource-intensive artificial intelligence (AI) and high-performance
computing (HPC).
“When
it comes to embracing HPC and AI hosting, a few miners stand out,” commented
Feng. Core Scientific (CORZ), Iris Energy (IREN), and Bit Digital (BTBT) have
been making headlines, while others like Hut 8 (HUT), TeraWulf (WULF), and
Bitdeer (BTDR) have been quieter on this front.
We also
wrote about this trend on Finance Magnates. According to an analysis by
VanEck's head of digital assets research, Matthew Sigel, estimates that this
strategic pivot could unlock $38 billion in value for mining companies by 2027.
“AI
companies need energy, and Bitcoin miners have it,” commented
Sigel. “As the market values the growing AI/HPC data center market, access
to power—especially in the near term—is commanding a premium.”
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
FTX Auditor Prager Metis to Pay $1.95 Million for Negligence
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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🐦 Twitter: https://twitter.com/F_M_events
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Don't miss out on our latest videos, interviews, and event coverage.
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In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
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Ready to Scale? Regtech in Australia, A Global View | FMPS:24
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage.
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In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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Don't miss out on our latest videos, interviews, and event coverage.
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Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
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