Bitcoin miners generated an estimated $692 million in revenue in December, up 33% from November, according to on-chain data from Coin Metrics analyzed by CoinDesk.
Extending Novemberâ€™s own 48% increase, miner revenues continued to soar as bitcoin rallied over 300% last year, briefly trading above $29,000 for the first time ever on New Yearâ€™s Eve.Â
Revenue estimates assume miners sell their BTC immediately.
Measured by per terahash per second (TH/s), miner revenues nearly tripled in the past three months, reaching $0.284 Thursday, per data from Luxor Technologies, its highest level since August 2019, as CoinDesk previously reported.Â
Network fees brought in $68.3 million in December, or nearly 10% of total revenue, a slight percentage decrease from the 10.5% of revenue represented by fees in November.Â
Fees were quite volatile in December, bouncing between $4 to all the way to above $12 throughout the month, per Coin Metrics.Â
Notably, fees as a percentage of total revenue continues a strong upward trend since April, prior to the networkâ€™s third-ever block subsidy halving in May. Increases in fee revenue are important to sustain the networkâ€™s security as the subsidy decreases every four years.
Taking advantage of the revenue increase, miners are bringing more machines online, pushing the networkâ€™s difficulty to record highs after Saturdayâ€™s adjustment.Â
Whatâ€™s more, miners have ordered so many new machines to capitalize on the period of increased profitability that leading manufacturer Bitmain, for example, has sold out until August even after nearly doubling the price of some models.Â
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