Bitcoin miners suffered a 23% drop in revenue during June, resulting from lower network fees and a reduced block subsidy after the in May.
Down from $366 million in May, miners generated an estimated $281 million in revenue in June, a three-month low according to data analyzed by CoinDesk. Estimates assume miners sell bitcoins immediately.
Mining is the process of adding confirmed transactions to the Bitcoin blockchain. For the resources required to mine, the network compensates miners via subsidies and transaction fees. Subsidies are paid per block at a current rate of 6.25 BTC. Fees are paid per transaction.
Compared to May, June subsidies and fees offer a better representation of mining revenue after the halving, said Austin Storms, founder of mining mobile infrastructure company BearBox. Even with an 11% decline in May, the month’s first 11 days of the month are weighted heavily from the 12.5 BTC per-block subsidy that later dropped to 6.25 BTC, Storms told CoinDesk.