Key Points
- Bitcoin miner revenue reached its second-highest day on March 6, following Bitcoin’s all-time high price.
- Hut 8, a Bitcoin mining company, closed its mining site due to power disruptions and increasing energy costs.
On March 6, the daily revenue of Bitcoin miners reached an impressive $75.9 million. This surge in revenue came just a day after the price of Bitcoin (BTC) soared to a record high of over $69,200.
Impact on Mining Companies
The same day this revenue surge was recorded, Hut 8, a Bitcoin mining company, announced the immediate closure of its mining site in Drumheller, Alberta, Canada. The closure was necessitated by power disruptions and escalating energy costs. This facility had been mining 48 Bitcoins annually, which accounted for about 1.4% of the company’s holdings, at a cost of 11% of its hash rate.
The $75.9 million daily revenue is second only to the record $77.3 million generated on April 14, 2021, when Bitcoin was trading above $60,000. However, it’s worth noting that some of the largest Bitcoin mining stocks experienced a dip of over 27% in the three days leading up to March 1, when Bitcoin reached the $64,000 mark.
Potential Reasons and Future Predictions
Mitchell Askew, head analyst at Blockware Solutions, suggests that investors may be hesitant to invest in Bitcoin miners due to the anticipated halving event. This event will reduce Bitcoin miner rewards from 6.25 BTC, valued at $417,279, to 3.125 BTC, worth $208,638.
Following the previous record high in miner revenue, Bitcoin’s price experienced a 22% retracement in the following 11 days. Bitcoin’s price fell 0.54% in the 24 hours leading up to 9:53 am UTC, to trade at $66,768. Despite the fall, the cryptocurrency is up over 6.8% on the weekly chart.
While many analysts remain positive about Bitcoin’s trajectory, some predict a potential price retracement to below $44,000 during 2024. This prediction is based on technical analysis from a pseudonymous Bitcoin analyst known as Dave the Wave.
