In 2023, there was a turnaround in the overall trend, where cryptocurrency entrepreneurs took charge of the situation and helped restore investor confidence. The primary source of Bitcoin mining revenue comes from rewards for confirming Bitcoin transactions and creating new blocks using high-tech computer equipment known as mining platforms. Miners currently receive 6.25 Bitcoins for every successful block creation, in addition to transaction fees.
On November 12th, daily Bitcoin mining rewards exceeded $44 million for the first time in 2023, a figure last seen in April 2022. Between April 2022 and November 2023, several factors contributed to the decline in Bitcoin mining revenues globally, including a prolonged bear market, negative investor sentiment regarding fraudulent activities, environmental system collapses, and unfriendly regulations restricting Bitcoin transactions.
However, 2023 witnessed a reversal of the overall trend, with cryptocurrency entrepreneurs taking charge and aiding in restoring investor confidence. Due to the rise in market prices and increased public interest, the mining community experienced a revenue surge over the year.
Marathon Digital Holdings, a Bitcoin mining company, announced a 670% year-on-year increase in the third quarter of 2023, amid nearly fivefold growth in Bitcoin production. Several countries actively participate in securing the Bitcoin network through mining, including landlocked Asian countries like Bhutan, which actively mine Bitcoin using hydroelectric power.
The Kingdom of Bhutan has explored partnerships to expand mining operations further, negotiating with the NASDAQ-listed mining company “Bitdeer” to secure 100 megawatts of power for a Bitcoin mining data center in Bhutan. This partnership is expected to increase Bitdeer’s mining capacity by approximately 12%.
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