Bitcoin (BTC) miners are reaping record profits, with daily mining rewards reaching a record-breaking $78.89 million on March 11, according to data from Blockchain.com. This surpasses the previous high of $74.4 million set in October 2021. The surge in miner revenue coincides with Bitcoin’s own record-breaking run. The leading cryptocurrency recently hit an all-time high of $72,953 on March 12.
Transaction fees, along with block rewards, contribute to miner revenue. Currently, miners receive 6.25 BTC for every successful block created. The recent uptick in transactions translates to more rewards for miners who secure the network. The Bitcoin hash rate, a measure of the network’s processing power, recently reached an all-time high of 676 exahashes per second (EH/s) in February. Despite a slight dip, the hash rate remains significantly higher than last year.
However, with the upcoming Bitcoin halving event in April, some miners are taking precautions. The halving will cut block rewards in half, from 6.25 BTC to 3.125 BTC. To offset this decrease, some miners are reinvesting their profits in additional mining equipment, according to a Bloomberg report. Data suggests major mining firms have purchased over $1 billion worth of rigs in the past month.
On-chain data from Glassnode indicates that miners are also selling some of their Bitcoin holdings, potentially to prepare for the halving or capitalize on the recent price surge. This selling activity is considered normal within a bull market, especially considering the record transaction volume pushing more Bitcoin onto the market.