BTC miner losses widen as public firms sold 32K BTC in Q1

Bitcoin (BTC) mining profitability is steadily deteriorating, intensifying margin pressure on mining companies, according to an analysis by The Block. The outlet noted that daily revenue for BTC miners, based on a seven-day moving average, is currently around $30 million, a significant drop from over $50 million recorded last summer. Revenue from transaction fees is less than $250,000, making its contribution to mining profits negligible. While BTC is trading at $61,000, JPMorgan estimates the cost of production to be approximately $78,000. Bitcoin's price has remained below its mining cost for five consecutive months, setting a new record for the current cycle. An estimated 20% of all mining operations are currently running at a loss. To cover operational expenses, publicly traded mining firms sold more than 32,000 BTC, valued at roughly $2 billion at current prices, in the first quarter alone. With the next halving approximately two years away, any recovery in mining revenue is likely to depend heavily on a rise in BTC's price rather than on transaction fees, The Block concluded.