The Bitcoin mining industry is under mounting pressure following the network’s April 2024 halving, which reduced block subsidies from 6.25 BTC to 3.125 BTC.
Despite BTC’s spot price hovering near $95,000, miner revenues have not kept pace, with multiple indicators highlighting sharp contractions in profitability.
Declining Fee Contribution
One of the most notable shifts post-halving is the decline in transaction fees as a share of total miner revenue. Currently, fees account for just 1.48% of block rewards—one of the lowest ratios observed since early 2023. This drop reflects waning demand for on-chain block space.
Temporary fee spikes from events like the launch of Runes and activity surrounding Ordinals pushed average fees to $127 per transaction in April 2024. However, those spikes proved fleeting. Fee levels have since collapsed below $2, suggesting that transaction-based miner compensation is proving unsustainable.
Stagnant Hashprice Despite Price Rally
The hashprice—representing miner earnings per petahash per second (PH/s)—has failed to rise alongside Bitcoin’s surging spot price. As of late April 2025, hashprice stood at $48.9 per PH/s/day. This stagnation contrasts sharply with previous bull cycles, where hashprice typically surged with BTC’s value.
The current discrepancy has left many mining operations underwater. Mining rigs operating at 25–38 J/TH only generate around $0.06 per kWh—below the U.S. grid electricity average of $0.08. This implies negative margins for even moderately efficient miners, forcing smaller or higher-cost operators to consider powering down or upgrading hardware.
Broader Implications for Bitcoin’s Security Model
The reduced fee contribution and stagnant hashprice spotlight a broader concern about Bitcoin’s long-term security model. As block subsidies continue halving every four years, the network is expected to rely more heavily on transaction fees to incentivize miners. However, with off-chain solutions like the Lightning Network serving over 650 million indirectly connected users, on-chain activity appears increasingly insufficient to fill the revenue gap.
The sustainability of miner incentives—crucial to the network’s security—may depend on new innovations in layer 2 adoption, fee market mechanics, or even protocol-level changes.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bitcoin-miners-struggle-as-rewards-shrink-and-fees-plunge-post-halving/