Bitcoin Miners Face 50% Revenue Drop, Hold Reserves

Bitcoin miners are currently facing a significant challenge, with daily revenues plummeting to levels not seen in over a year. On June 22, the daily revenue for miners dropped to $34 million, the lowest point since April 20, 2025. This decline is primarily due to a combination of lower transaction fees and a recent decrease in the price of Bitcoin. The reduction in transaction fees has had a substantial impact on miners' earnings, as these fees are a crucial component of their overall revenue.

According to CryptoQuant, miner revenue has been steadily declining throughout June, with a sharp drop-off in daily earnings. The combined effect of a decline in network fees and Bitcoin’s price pulling back from recent highs has led to a painful reduction in miner margins. This marks the lowest payout level since April 2024, as falling transaction fees and recent price declines squeeze profitability across the mining sector. The firm’s Miner Profit/Loss Sustainability model also indicates that miners are currently more underpaid than at any time since July 2024. This means that, relative to the network’s difficulty and BTC’s current market value, the rewards earned are failing to cover operational expectations—raising concerns about capitulation risk for smaller or leveraged mining operations.

Despite the challenging conditions, miners have shown a remarkable trend of holding onto their Bitcoin reserves rather than selling. This behavior is particularly notable among larger miners, who have been actively adding to their BTC holdings instead of taking profits. Miners have added 4,000 BTC to their reserves since April, even as Bitcoin prices reached new all-time highs. This trend suggests that miners are optimistic about the future value of Bitcoin and are strategically holding onto their assets. The oldest participants in the Bitcoin mining ecosystem, often referred to as "Satoshi-era" miners, have also significantly reduced their sales compared to the previous year. In 2025, these miners have sold only 150 BTC, a stark contrast to the nearly 10,000 BTC they sold in 2024. Historically, these miners have been known to sell their holdings during bull market rallies, but this year they have chosen to maintain their reserves, indicating a shift in strategy.

The overall operating margin for miners remains at 48%, which has contributed to the trend of holding onto Bitcoin. Miners holding between 100 and 1,000 BTC have increased their reserves by 4,000 BTC since April, reaching a total of 65,000 BTC. This increase is the highest since November of the previous year, when selling spiked as Bitcoin broke through old all-time highs. The Bitcoin network hashrate has declined by 3.5% over the past 10 days, representing the largest drawdown since July 2024. This decline follows the most recent block subsidy halving event, which cut miner revenue per block by 50%. Despite the lower revenues, miner selling has remained muted. Miner outflows have dropped from a daily peak of 23,000 BTC in February 2025 to roughly 6,000 BTC as of the latest data. Additionally, the amount of Bitcoin transferred directly from miners to exchanges has remained low, further indicating a trend of holding onto reserves.

Historically, sharp miner underpayment often precedes market turning points. While some see miner strain as a potential buy signal—suggesting suppressed supply inflows—persistent low revenues could also lead to hashrate declines or equipment sell-offs, potentially impacting network stability. With Bitcoin trading in the $100K–$105K range and fee activity subdued, miners may need a renewed price rally or transaction surge to restore healthy earnings. This challenging period for miners highlights the importance of strategic holding and the potential for future market shifts based on miner behavior.