CoinMetrics have reported that Bitcoin miners recorded over $1 billion in profits for their operations in January. According to the crypto analytic site, the profits generated from the previous month was just a few million shy of the all-time high generated in December, 2017 when the coin witnessed a similar bullish run in the market. Then, miners had generated $1.25 billion in profits.
For two years straight now, miners have been able to generate over $1 billion in profit in the first month of the year. The profit generated in the previous month is also two times of what was generated in November, 2020.
It was also reported that close to 90% of the profit generated from mining activities came from the network’s block subsidies. Transaction fees accounted for the remaining 10% of the profits generated.
Bitcoin halving usually reduces the reward per mined BTC block. The last BTC halving event in May 2020 saw miners now have a reward of just 6.25 BTC. However, despite this drop, the rally the coin saw towards the end of last year and into early this year can be said to be why most profits were generated from mining revenue.
Bitcoin mining difficulty remains stable
On the other hand, Bitcoin mining difficulty has remained quite stable. There appears to be more capable miners who are able to increase the daily generated revenue from each Terahash per second. Presently, that figure stands at around $0.25 which is a record high —the last time it was this high was in 2019.
It should be noted that the coin has witnessed a supply shortage in its mining equipment, regardless of this, BTC hashrate reached an all-time high of 155.4 million TH/s on January 17. There has however been a drop from that figure in recent times by close to 5 million TH/s.