Stronghold’s Bitcoin Mining Output Drops by 47%

Several Bitcoin (BTC) mining firms have noted a significant drop in production following the fourth Bitcoin halving in April.

According to Stronghold Digital Mining’s report for May, the firm noted a 47.1% fall in its monthly mining production output. Unlike the 155 BTC mined in April, the Bitcoin mining platform produced only 82 BTC last month.

Accompanying Revenue Decline

Stronghold Digital also reported a 46% revenue decline from April after generating $5.2 million in May. Since the numbers reflected the first month of operations following the block rewards reduction, Stronghold believed that the halving event was the main reason for this significant decrease in revenue.

Moreover, the firm revealed that the average hash price for May was $0.052 per TH/s, a stark difference from the $0.095 in April. This drop resulted from a 0.8% drop in BTC’s price and a drop in transaction fees (25.3% in April compared to 7.4% in May). Furthermore, Stronghold noted that the network’s hash rate was 1.2%, which offered some respite against the declining trend despite these obstacles.

Broader Mining Production Impacts

The drop in BTC production output reflects the current conditions in the broader crypto-mining ecosystem, with some of the industry’s heavyweights struggling with revenue decline. Like Stronghold, Cipher Mining also noted a 43.9% month-over-month dip from 296 BTC in April to 166 BTC in May.

However, the company remarked that it kept positive cash flows and enlarged its inventory and operational sites in preparation for the halving event’s influence on its mining operations.

Meanwhile, Marathon Digital generated 616 BTC in May instead of 850 BTC in April, a 27.5% drop. However, the firm offset this fall by adding more mining blocks (increasing their count from 129 in April to 170 in May).

Marathon possessed 17,857 BTC at the end of May after selling 390 BTC. It also noted an installed hash rate of 30.6 EH/s and an energized hash rate of 29.3 EH/s.

Consistent with the larger industry pattern following the halving event, other mining firms like Bitfarms and SCleanspark also noted declines in their BTC output. The April 2024 Bitcoin halving lowered block rewards by 50%, affecting general production and mining difficulty.

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