Bitcoin Miners Witness Over 40% Production Decline Since Halving

Bitcoin Miners Witness Over 40% Production Decline Since Halving

Bitcoin miners have faced a significant reduction in their production levels since the network's halving event in April. A report by non-cryptocurrency publication BeInCrypto reveals that the majority of miners have experienced a decline of over 40% in their BTC production since April 20th, when the block reward was slashed by 50%. The halving event reduces the number of bitcoins released into circulation every 210,000 blocks. This affects miners who rely on block rewards as their primary source of income. The report cites data from publicly traded mining companies to support its findings. CleanSpark, for instance, reported a 42% month-over-month decrease in its BTC production from 721 BTC in April to 417 BTC in May. Riot Platforms, another major miner, witnessed a similar decline of 43%, with its BTC output falling from 215 BTC in May to 383 BTC the following month. Bitfarms also saw a significant drop, with its production falling by 42% from 269 BTC in April to 156 BTC in May. However, it's worth noting that not all miners have been affected to the same extent by the halving. TeraWulf, for example, reported a more modest 25% month-over-month decline in its BTC production. Despite the short-term impact on miners, many industry experts believe that the halving event is ultimately beneficial for the long-term health of the Bitcoin network. The reduction in block rewards incentivizes miners to increase their efficiency and explore alternative revenue streams, while also reducing the rate at which new bitcoins enter the market, potentially contributing to price stability.