Bitcoin Miners Face 70% Revenue Drop, Hold Coins Despite Losses

Bitcoin miners are currently facing their lowest earnings in a year, with revenues dropping to $34 million. This decline is primarily due to lower transaction fees and a softer Bitcoin price, which has put significant pressure on mining profitability. The fading Ordinal inscription activity, which had previously inflated transaction fees earlier in the quarter, has also contributed to this drop. According to Cryptoquant’s Miner Profit/Loss Sustainability metric, miners are now “extremely underpaid.”

Despite these financial challenges, miners are demonstrating resilience and are not capitulating. Outflows of Bitcoin from mining operations have decreased significantly, from a peak of 23,000 coins per day in February to about 6,000 coins. This indicates that miners are holding onto their coins rather than selling them, even as their revenues dwindle. Additionally, there has been a decline in direct transfers to exchanges, suggesting that miners are choosing to hold onto their coins instead of dumping them on the market.

The drop in miner revenue has already started to affect network activity. Bitcoin’s hashrate has decreased by 3.5% since June 16, marking the steepest decline since the 8.4% drop following the 2024 halving event. This computational weakness could signal broader miner capitulation if Bitcoin prices fail to rebound. However, miners are choosing to ride out the current volatility rather than selling off their coins.

Interestingly, Satoshi-era wallets, which have been dormant for years, have only sold 150 Bitcoin in 2025, compared to the thousands of coins sold in 2024. This lighter selling suggests that the fears of legacy Bitcoin supply flooding the market might be overstated. According to Cryptoquant analysts, such light selling is typically aligned with continued bull-market conditions, giving miners and investors reason to remain optimistic.

Meanwhile, Bitcoin miners holding between 100 to 1,000 Bitcoin have been accumulating, with reserves rising from 61,000 coins on March 31 to 65,000 coins by the end of June. This marks the highest level of accumulation since November 2024. Such an increase in reserves often precedes price recoveries, indicating that miners are anticipating an eventual rebound in Bitcoin prices. However, researchers caution that rising energy costs and increasing regulatory pressure could potentially squeeze margins in the near future.