Bitcoin mining revenue is lower than annual revenue after halving.

The fourth Bitcoin halving event in May saw a significant drop in revenue from Bitcoin mining.

Bitcoin's halving mechanism is intended to further limit the production of 21 million bitcoins (BTC) spread over decades. The April 20 halving reduced mining rewards from 6.25 BTC to 3.125 BTC.

While the initial hype surrounding the halving and launch of Bitcoin Runes kept miners' daily income up for the time being, May saw a sharp decline in income. On May 1, total revenue from block rewards and transaction fees dropped to a new low of $26.3 million.

In contrast, Bitcoin miners were earning an average of $6 million per day before the halving, according to data from Blockchain.com.

Other days in May also recorded similar revenue patterns, indicating a new normal in Bitcoin mining revenue. Coincidentally, on April 20, mining revenue hit a record high of over $107 million for the first time in Bitcoin history.

Anticipating this massive decline, miners around the world have changed strategies to remain profitable in the next Bitcoin economy. If not, miners will have to rely solely on Bitcoin's high market value to fund operations.

Read Cointelegraph's guide to learn more about becoming a profitable Bitcoin miner from home.

CryptoQuant CEO Ki Young Ju calculated that he would need to hold more than $80,000 in mining to sustain the post-halving in current conditions. However, most miners have taken proactive steps to improve their mining equipment to remain competitive and reduce long-term operating costs.

Related: Bitcoin reaches one billion transactions

For example, Bitcoin mining company Bitfarms has allocated $240 million to triple its hash rate. Speaking to Cointelegraph previously, Bitfarms Chief Financial Officer Jeffrey Lucas revealed the company's intention to buy the company's 88,000 highly efficient Bitcoin miners:

“Transformational fleet upgrade will halve Bitfarms size and profitability in Bitcoin. This game changer will triple our hash speed to 21 EH/s, increase our target operating capacity by 83% to 440 megawatts (MW) and increase flight efficiency by 40% to 21 W/TH It improves.

Despite the efforts, Bitfarms recorded the lowest income of 269 Bitcoin in two years in April.

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