Bitcoin (BTC) miners have profited roughly 37% from mining Bitcoin since its inception, new data reveals.
Calculations from on-chain analytics firm Glassnode suggest that since 2010, fees and block reward subsidies have netted miners over $50 billion.
Bitcoin miner revenue passes $50 billion mark
Amid an ongoing debate over miner costs and susceptibility to Bitcoin price dips, new figures suggest that long term, miners are firmly in the black.
According to Glassnode, miners’ total all-time income is almost 40% higher than their estimated costs — $50.2 billion versus $36.6 billion, respectively.
Researchers generated the numbers using two metrics: thermocap and transaction fees — “the cumulative sum of Issuance multiplied by spot price in addition to all-time generated fee revenue” — and difficulty production cost.
In a dedicated report in late March, they explained the nuances behind the calculations, while arriving at the 37% profit margin still in place today.
“In this model, the Thermocap and Transaction Fees can be considered the realized revenue by miners, whilst the Difficulty Production Cost is considered the aggregate mining input expense,” the report explains.
The results go some way to countering fears that too low a BTC/USD price could spark mass capitulation across the mining industry, which nonetheless continues to grow rapidly.
Bitcoin network fundamentals support the argument, with difficulty and hash rate both hitting new all-time highs throughout 2023.
Current estimates from BTC.com, however, predict that this week’s difficulty adjustment will be the first negative one for Bitcoin since mid-February.
Bitcoin transaction fees spike higher
Meanwhile, an influx of newly-created unspent transaction outputs (UTXOs) thanks to ordinals is rapidly making on-chain transactions less appealing this month.
Related: BTC price may need a $24.4K dip as Bitcoin speculators stay in profit
Glassnode shows these created UTXOs spiking to their highest levels since 2015 in May, and fees have been rising accordingly.
Blockchain.com has the 1-day moving average transaction fee rate at $6.91 for May 2 — more than at any time since July 2021.
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