Bitcoin's Daily Mining Revenue Drops to 11-Month Low in May

This year, as the cryptocurrency winter intensified, Bitcoin mining revenue and profitability continued to decline along with the price of Bitcoin.

May was one of the worst months for bitcoin miners in the past year, with revenue and profitability continuing to decline. Data collected by Ycharts from Blockchain.com shows that daily mining revenue for Bitcoin fell by 27% in May.

On May 1, the analytics provider reported that bitcoin miners were earning $40.57 million in daily revenue, but by the end of the month, that figure had dropped to $29.37 million. On May 24, daily mining revenue hit an 11-month low of $22.43 million.

Bitcoin Daily Mining Revenue YTD - ycharts.com

Daily mining revenue spiked to a peak of around $80 million in April 2021, but has since fallen 62% to current levels.

Mining profitability, or USD per THash per second per day, has hit its lowest level since October 2020, according to Bitinfocharts. The crypto data provider currently reports a mining profitability of $0.112/day for 1 THash/s.

Furthermore, the metric is down 56% since the beginning of the year and over 75% since its 2021 high of $0.450/day per TH/s.

Bitcoin mining profitability in 1 year - bitinfocharts.com

Bitinfocharts data shows that the Bitcoin network hash rate is still high, currently averaging 211.82 Exahash per second per day. This figure is down about 16% from the all-time high of just over 250 EH/s on May 2.

High hash rate but low profitability may indicate that the bitcoin mining industry is much more competitive than it has seen in the past. During earlier bear markets, miners shut down as asset prices fell and mining operations were temporarily unprofitable.

Additionally, data from Glassnode shows miners’ exchange flows have just hit a four-month high, suggesting they may be preparing to sell some of their assets to make up for falling revenue.