With bitcoin experiencing a price correction of almost 50% in May from the all-time high, mining revenue was expected to take a significant hit. However, contrary to expectations, the revenue has shown resilience.
Data acquired by Finbold indicates that bitcoin miners earned $1.45bn in May, dropping only 15.01% from the April figure of $1.7bn.
The revenue dropped slightly considering bitcoin suffered a significant price correction of about 36% in May. Between March and April, the revenue slightly plunged 2.5% from $1.75bn to $1.7bn.
Over the last three months, the highest daily bitcoin mining revenue was on April 15th at $77m. The lowest returns were recorded on May 29th at $26m.
Continued crackdown likely to impact bitcoin mining revenue
In May bitcoin faced increased scrutiny over the carbon footprint debate, something that was expected to significantly impact mining revenue.
According to the research report: “The bitcoin mining revenue is encouraging considering that the industry has witnessed a decline in profitability over recent years. However, with the regulatory crackdown on mining, the industry risks slowing down on revenue since large-scale miners are mostly targeted by authorities.”
The focus on bitcoin’s energy consumption can potentially lower the interest from institutional investors who want to meet the needs of environmentally cautious investors. However, the emergence of renewable energy sources might tilt the tide.
The research report notes that: “With the increased focus on renewable energy for bitcoin mining, the asset might attract more institutions potentially sparking an increase in value and consequently the mining revenue.”
Regions like North American are taking the lead aiming to establish a bitcoin mining hub that relies on renewable energy.