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. $2.4M for mining one block. Runes made miners rich
block_840k 37.626 BTC in fees and miners still complain. runes literally subsidized the halving and nobody talks about it
average production cost at $53k per BTC means some miners are already underwater post halving. expect consolidation
miners pivoting to AI data services makes sense. they already have the power contracts and cooling infra
53k production cost with rewards halving means small miners are toast. expect a wave of bankruptcies by q3 unless price recovers fast
pool_exit_ small miners were toast before the halving too. this just made it obvious. consolidation was always the endgame
Priya N. 53k production cost is misleading because it ignores stock based compensation and depreciation. cash cost is lower but fully loaded cost is closer to 65k for public miners. the weak hands already got shaken out
Soren L. 53k cost number skips stock comp so it looks worse than reality. fully loaded cost is closer to 65k for public miners
inflation rate dropping from 1.75% to 1.1% is the quiet fundamental. less new supply every single day now
1.1% annual inflation means btc is now scarcer than gold on a yearly basis. the supply squeeze argument keeps getting stronger every cycle
Mateo V. 1.1 percent inflation now makes btc scarcer than gold on yearly basis. the supply squeeze argument keeps getting stronger
Mateo V. btc scarcer than gold on annual emissions is the bull case nobody talks about enough. 1.1% dilution vs golds 1.5% mining growth. the flip happens quietly then everyone pretends they saw it
37.626 BTC in fees on the halving block alone. Runestone inscriptions turned the halving into a fee market event nobody modeled
ViaBTC mining block 840000 is poetic. they were a mid tier pool for years and snatched the most historic block since genesis
runes protocol launching on the same block as the halving was not a coincidence. the fee market just became a permanent feature of btc mining revenue
37.626 BTC in fees on the halving block. runners were paying millions just to be first. pure spectacle
Runestones subsidized the first post-halving blocks but fee revenue collapsed within 2 weeks. the fee market thesis needs sustained demand not a one day spike
annual inflation dropping from 1.75% to 1.1% makes BTC scarcer than gold (1.5%). the stock-to-flow crowd finally got their number even if the price action disagreed
37.626 BTC in fees on the halving block is insane. Runes launched same block and basically subsidized miner revenue during the reward cut. nobody saw that coming
BTC annual inflation dropping to 1.1 percent makes it scarcer than gold at 1.5 percent. the stock to flow crowd finally got their number even if price action disagreed
Yeo-Beom C. scarcer than gold is irrelevant when production cost is 53K for public miners post halving. small operations are bleeding and consolidation is accelerating
53K production cost for public miners is misleading. slick advantage and bitfarms were closer to 42K breakeven. the small ops at 53K were already gone before halving
37.626 BTC in fees on the halving block alone. Runestones turned the halving into a fee goldmine for miners. without that fee subsidy the first post-halving blocks would have been brutal for revenue
block_840k_ ViaBTC snatching block 840000 after being a mid tier pool for years is the ultimate underdog moment. that block will be in the history books forever. the fee revenue from Runestones alone probably paid for their operation for months