Bitcoin Mining Firms Experience Significant Decline in Output Following Halving
In the aftermath of Bitcoin’s halving, Stronghold Digital Mining reported a substantial 47.1% decrease in its monthly Bitcoin mining output for May. The company mined 82 BTC during the month, compared to 155 BTC in April. Additionally, revenues for the same period came in at $5.2 million, reflecting a 46% drop from the previous month.
Stronghold attributed the decline directly to the halving, stating, “The primary driver of the decline was due to the first full month of post-halving operations.” The company also noted an average hash price of $0.052 per TH/s in May, down from 0.095 in April.
Cipher Mining and Marathon Digital also reported decreases in production for May. Cipher Mining mined 166 BTC compared to 296 BTC in April, while Marathon Digital produced 616 BTC, down from 850 BTC the previous month.
Despite the challenges posed by the halving, Cipher Mining emphasized that it maintained positive cash flows and expanded its inventory and operation sites. Marathon Digital mitigated the reduction by increasing the number of mining blocks it won in May.
Other companies such as SCleanspark, Riot Platforms, and Bitfarms also reported declines in their BTC output for the month.
The Bitcoin halving, which took place on April 20, 2024, reduced block rewards from 6.250 to 3.125 and has had a significant impact on miner difficulty.
