Bitcoin miners earned more than $ 64.386 million in daily revenue on March 18 – the highest level in the currency’s history, according to data from blockchain.com.
What happened: The recent price hike to $ 61,000 has made Bitcoin mining operations an incredibly lucrative opportunity for those involved in the industry.
Earlier today, Tyler Page, CEO of mining company Cipher Mining, said Yahoo Finance that the mining business was vital to the success of the network as a whole.
“The miners validate the transactions and also bring new supplies of bitcoins to the market. This is our business, helping this infrastructure to survive and grow. “
Why does it matter: The miner’s revenue comes from the “blocking reward” they earn after successfully validating a transaction on the Bitcoin blockchain, as well as transaction fees on the network. As the block reward is paid in Bitcoin, the movement of the price of the digital asset plays an important role in mining operations.
Although the stock price of mining stocks as Marathon Digital Holdings (NASDAQ: MARA) has risen more than 800% since the start of the Bitcoin bull run in December 2020, the shares fell more than 11% after the company released its latest financial results.
The company reported a net loss of $ 10.4 million in the year ended December 31, 2020, which confused some investors who expected more solid financial performance.
The discrepancy in their reported earnings can be explained in part by the fact that Bitcoin miners only recognize revenue when selling Bitcoin earned in exchanges.
The last time the company sold Bitcoin was on October 21, 2020, and since then, it has been accumulating or “hodling” all the Bitcoin generated, they said in a press release.
Price action: Bitcoin traded at around $ 58,000, after hitting a high of $ 61,578 earlier this week. To date, the price of the digital asset was $ 58,640, up 1.30% in the past 24 hours.
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