Bitcoin miners are confronting a harsh new reality in the weeks following the fourth halving, as revenue per terahash has fallen to an unprecedented low. With the network hashrate stubbornly holding above 600 exahashes per second (EH/s) and block rewards slashed to 3.125 BTC, the economics of mining are being tested like never before.
TL;DR
- Bitcoin miner revenue per TH/s hits all-time low on the 7-day moving average
- Network hashrate remains above 600 EH/s despite reduced profitability
- Major mining firms report 6–36% production declines in April
- Hut 8 saw a 36% drop in output after relocating 25,000 machines
- Block reward halving to 3.125 BTC reduces daily mining output to approximately 450 BTC
The Revenue Crunch
Data from The Block Research confirms that the seven-day moving average of Bitcoin miner revenue per terahash per second has reached its lowest level ever recorded. The metric, closely watched by industry analysts as a barometer of mining profitability, reflects the combined impact of the April 20 halving event and a persistently elevated network hashrate that shows no signs of retreating.
The halving reduced the block subsidy from 6.25 BTC to 3.125 BTC, immediately cutting the baseline revenue for every miner on the network. With approximately 450 BTC now being mined per day compared to roughly 900 BTC before the halving, the revenue pool available to miners has been effectively halved while competition for it remains fierce.
Bitcoin was trading at approximately $62,335 on May 7, 2024, according to CoinMarketCap data, which provides some cushion for miners who accumulated during lower price periods. However, for operations with high energy costs or significant debt obligations, the squeeze is becoming increasingly difficult to absorb.
Major Miners Report Production Declines
The impact is visible across the publicly traded mining sector. Hut 8, one of America’s largest crypto mining companies, reported a staggering 36% decline in proprietary Bitcoin production for April, producing just 148 BTC compared to 231 BTC in March. The decline was compounded by the relocation of over 25,000 mining machines from sites in Nebraska and Texas that were acquired by Marathon Digital Holdings. Hut 8’s deployed hashrate fell from 5.4 EH/s to 4.5 EH/s as a result.
“Amidst the backdrop of the halving, the operational capabilities of our team enabled us to maximize deployed hash rate as we completed the relocation of our fleet from hosted to owned facilities and brought new capacity online,” said Asher Genoot, CEO of Hut 8, framing the production decline as a temporary transition cost rather than a structural weakness.
Hut 8 was far from alone in reporting reduced output. Industry outlet The Miner Mag documented that Bitfarms, Cipher, CleanSpark, Core Scientific, Riot, and Terawulf all reported production declines ranging from 6% to 12% in April. Riot Blockchain specifically noted a 12% decline in BTC production for the month, reflecting the broader industry trend of shrinking margins post-halving.
Hashrate Resilience Adds Pressure
What makes this cycle particularly challenging is the resilience of the network hashrate. Despite declining revenue per unit of computational power, the total hashrate has remained above 600 EH/s, indicating that the most efficient miners are continuing to expand operations even as less competitive miners are forced to scale back or shut down entirely.
This dynamic creates a vicious cycle for smaller operators: as more efficient miners bring newer hardware online, the network difficulty adjusts upward, further compressing margins for everyone. The result is an accelerating consolidation trend where only miners with access to the cheapest energy and most modern ASIC hardware can maintain profitability.
Industry Consolidation Accelerates
The post-halving environment is accelerating a consolidation trend that was already underway. Public mining companies with access to capital markets are using the downturn as an opportunity to acquire distressed assets, upgrade their fleets to more efficient machines, and negotiate favorable energy contracts. Hut 8’s machine relocation, while temporarily reducing output, represents exactly this kind of strategic repositioning.
The disparity between large-scale industrial miners and smaller operations is widening. Companies like Marathon Digital, which acquired Hut 8’s hosted sites, are effectively betting that their scale and operational efficiency will allow them to weather the post-halving storm and emerge with a larger share of the network hashrate when conditions improve.
Why This Matters
The all-time low in miner revenue per terahash signals a critical inflection point for the Bitcoin mining industry. The halving’s intended function — to periodically reset mining economics and force efficiency improvements — is working as designed, but the transition is painful for operators who fail to adapt. For the broader Bitcoin network, the sustained hashrate above 600 EH/s demonstrates remarkable security and resilience, even as individual miners struggle. The mining sector is entering a phase where only the most operationally efficient and financially disciplined companies will survive, a dynamic that ultimately strengthens the network but concentrates mining power among fewer, larger players. Investors watching public mining stocks should pay close attention to each company’s cost per BTC mined, energy contracts, and fleet efficiency metrics in the coming quarterly reports.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency mining involves significant risk, and past performance is not indicative of future results. Always conduct your own research before making investment decisions.
revenue per TH at all time low and hashrate at 600 EH/s. miners are either locking in multi year power contracts or burning cash hoping BTC recovers fast enough to matter
Kjartan B. multi-year power contracts only work if you locked them in 2023. anyone signing now is paying 2024 rates into a 2026 revenue environment
Sven A. multi-year power contracts from 2023 are the only reason half these miners are still running. 2026 rates into a 3.125 BTC reward environment is a different game
450 BTC daily output post halving vs 900 before. revenue cut in half but hashrate barely moved. miners prepped for this
revenue per th at all time lows and hashrate still above 600 eh/s. miners are either insanely stubborn or they know something we dont
they know electricity is getting cheaper. the efficient ones are fine, its the marginal miners getting squeezed out
miners holding above 600 EH/s means they locked in cheap power contracts pre-halving. the weak hands already capitulated in April
they know electricity costs inside out. public miners with fixed-rate power contracts can mine profitably well below retail break-even
hut 8 moving 25k machines and dropping 36% output in one month. thats brutal operational whiplash
Hut 8 moving 25k machines mid-halving was either genius timing or a forced relocation sold as strategy. 36% drop tells you which one
Hut 8 was transitioning to cheaper energy sites. the 36% drop was temporary, their Q3 output recovered. short term pain for positioning
rigdown_ they know the inefficient miners are getting flushed. consolidation phase, same as every post-halving cycle
Tariq El-Amin consolidation phase is right. the 6 to 36pct production drops in April flushed the inefficient operators. same story every halving
3.125 BTC block reward with 600 EH/s hashrate means only miners with sub-5 cent power are surviving. the rest are bleeding slowly
Mikaela Foss sub-5 cent power is the survival line. anyone above that is mining at a loss post halving. the consolidation into efficient operators is happening in real time
Mikaela Foss sub-5 cent power is the survival line. anyone above that is just burning cash waiting for BTC to pump
600 EH/s after the halving means new machines were already deployed before April. you dont just order ASICs overnight
brunner_basin you dont deploy 600 EH/s overnight. those ASICs were ordered in 2023 when BTC was under 30k. the hashrate lag is 6-12 months
rig_count_42 ASICs ordered in 2023 when BTC was under 30k means miners were running break-even math before the halving. nobody deploys 600 EH/s on hopium
wattage_check_ ASICs ordered when BTC was under 30K was the real tell. miners who did the math in bear market are the ones still standing
revenue per TH at ATH lows and Hut 8 moving 25k machines mid-cycle. brutal timing but they had no choice
450 BTC daily at 600 EH/s means theNetwork is running hotter than ever for less reward. only the most efficient rigs survive this
Hut 8 relocating 25k machines for a 36% output drop wasnt strategy it was triage. you dont voluntarily eat that kind of loss
flux_cap_kep Hut 8 eating 36% output drop to relocate was forced. nobody voluntarily stops 25k machines during a revenue crunch
600 EH/s holding steady means the efficient operators already won. the marginal miners got flushed in April and the hashrate barely blinked