The Bitcoin network has officially completed its fourth block reward halving, marking one of the most significant milestones in the cryptocurrency’s fifteen-year history. At exactly 8:09 PM ET on Friday, April 19, 2024, mining pool ViaBTC successfully mined block 840,000, triggering the automatic reduction of block rewards from 6.25 BTC to 3.125 BTC per block.
TL;DR
- Bitcoin’s fourth halving completed at block 840,000, mined by ViaBTC at 8:09 PM ET on April 19
- Block rewards slashed from 6.25 BTC to 3.125 BTC — a 50% reduction
- The halving block carried a record-breaking 37.626 BTC ($2.4 million) in transaction fees
- Bitcoin’s annual inflation rate drops from 1.75% to approximately 1.10%
- Miners are increasingly pivoting to AI data services to offset shrinking rewards
A Historic Block With Record-Breaking Fees
The significance of block 840,000 extends far beyond the halving itself. The block accumulated an extraordinary 37.626 BTC in transaction fees — equivalent to roughly $2.4 million at the time — making it one of the most valuable blocks in Bitcoin’s history. This was largely driven by the simultaneous launch of Casey Rodarmor’s Runes protocol, which allows users to create fungible tokens directly on the Bitcoin network using its UTXO model.
Meanwhile, the final pre-halving block, 839,999, was mined by SBI Crypto, closing the chapter on the 6.25 BTC reward era that began after the third halving in May 2020. With the new 3.125 BTC subsidy, the roughly 450 new bitcoins entering circulation each day drops to approximately 225, further constraining the supply of new BTC hitting the market.
Miners Face Shrinking Margins
The halving presents immediate challenges for Bitcoin miners. According to a CoinShares report released to coincide with the event, the average production cost per bitcoin among listed mining companies stands at approximately $53,000. With Bitcoin trading around $63,800 at the time of the halving, margins were already tightening — and the 50% revenue cut makes profitability even more precarious for higher-cost operators.
James Butterfill, head of research at CoinShares, noted that several miners have already begun diversifying their revenue streams. Companies including Bitdigital, Hut 8, and Hive have started offering artificial intelligence data services, while Terawulf and Core Scientific are accelerating their own AI growth plans. Bitdeer and Iris Energy are also launching AI-focused services, signaling a broader industry shift toward dual-purpose data centers.
The ‘Epic Satoshi’ Phenomenon
One of the most fascinating aspects of the halving was the so-called “epic satoshi” — the very first satoshi mined in the initial block following a halving event. These satoshis are considered the rarest of all Bitcoin units due to their mathematical scarcity. The epic satoshi from block 840,000 was estimated to be worth approximately $1 million, and was later auctioned by CoinEx for over $2.13 million, underscoring the collector value that has emerged around Bitcoin’s smallest denomination.
Runes Protocol Ignites Fee Market
The launch of the Runes protocol alongside the halving created a frenzy of on-chain activity. Runes enables the creation of fungible tokens on Bitcoin using the UTXO model, similar in concept to BRC-20 tokens but with a different technical approach. The surge in users rushing to etch new digital tokens drove transaction fees to unprecedented levels. On April 20, the day after the halving, miners generated over $100 million in total rewards, with approximately $80 million coming from transaction fees alone — a figure that dwarfed the block subsidy itself.
What Comes Next
The reduced block reward of 3.125 BTC will remain in effect until block 1,050,000, expected around 2028, when Bitcoin will undergo its fifth halving and the reward will drop to 1.5625 BTC. By 2032, at block 1,260,000, miners will receive just 0.78125 BTC per block. Bitcoin’s annual inflation rate has now fallen to approximately 1.10%, bringing it below that of many traditional fiat currencies and reinforcing its appeal as a store of value.
Why This Matters
The fourth Bitcoin halving is more than a technical milestone — it represents a fundamental shift in the economics of the world’s largest cryptocurrency. With daily new supply cut in half and institutional demand continuing to grow through spot Bitcoin ETFs, the supply-demand dynamics that have historically preceded major Bitcoin bull runs are once again in play. The record transaction fees from the Runes launch also demonstrate that Bitcoin’s security budget can be sustained through fee market activity even as the block subsidy diminishes — a critical question that has long been debated among Bitcoin economists. For miners, the halving marks the beginning of a new era where operational efficiency and diversification into services like AI computing will separate survivors from those forced to shut down.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always do your own research before making investment decisions.
37.626 BTC in fees on the halving block alone. that is almost 2.4 million dollars. miners are crying about reduced subsidies but the fee market might save them
production cost at 53000 per BTC according to CoinShares. with the subsidy cut miners with older hardware are underwater unless btc pumps hard
inflation dropping from 1.75% to 1.10% is the real story here. btc becomes scarcer than gold after this halving in terms of annual supply growth