Bitcoin Miners Busy Accumulating BTC; Revenue from Fees Surges 2300% This Year
BTC miner outflow is nowhere near the previous tops, it is actually even below the 2019 local top.
2020 has been a good year for miners given that their revenue from fees increased from $0.1 million at the beginning of the year to $1.7 million as of Dec. 20th.
The daily miner revenue increased by 31% over the past week, as miners raked in more revenue through fees amidst the strong week for bitcoin price and activity levels.
The rising prices of the digital asset pushed the average fees on the bitcoin network to past $12, a jump of more than 4,185% from the average fee of a mere 2 cents in January 2020.
Miners are also not cashing out their BTC at these prices as seen in the amount of miner unspent supply, BTC that has never left the miner address, which has been increasing since the last halving and currently stands at 1.7 million BTC. Glassnode noted,
“Despite the recent rally, Bitcoin miners are not spending more BTC than usual. The Miner Outflow Multiple, which shows when BTC miner outflow is high with respect to its historical average, is far from previous tops and even below the 2019 local top.”
Bitcoin miners’ monthly revenue has been surging since September. In the month of November, they recorded $521.69 million in both subsidy and fees, last seen in September 2019. So far, this month $443.65 million have been raked in by them in revenue.
Ever since Bitcoin halving in May, which cut down the miners’ reward in half, fees have been accounting for 8% to 12% of miners’ total revenue, up from 1% at the beginning of this year.
Interestingly, while the price of Bitcoin is currently ranging from $22k and $24k, the stocks of publicly listed BTC mining companies have been up.
In the last 24 hours, Riot Blockchain shares are up 32%, Marathon Patent Group 21.5%, and Bit Digital’s 3.8%.