Earnings For Bitcoin Miners Hit 10-Year Low

Rising electricity costs in much of the world are also hurting Bitcoin mining profits and forcing smaller players out of the market, according to Glassnode.

Fees from minting new Bitcoin now comprise less than 1% of most miner's revenue.

In a social media post, Glassnode said that "Bitcoin was below $400 the last time fee share was this low." 

The situation has led many Bitcoin miners such as Riot Platforms (NASDAQ: $RIOT) and Hut 8 (NASDAQ: $HUT) to pivot to operating artificial intelligence (A.I.) data centres. 

Miners continue to struggle with Bitcoin's price having been effectively cut in half since hitting an all-time high of $126,000 U.S. last October, squeezing profit margins.

Data from onchain analytics firm Checkonchain puts the average cost of producing one Bitcoin at $78,254 U.S. as of Aug. 11, which is 23% above the current spot price of BTC.

Bitcoin is trading at $63,850 U.S. on Aug. 12.