Overview
- Bitcoin miner revenue
- Miner revenue in fees
- Public miners stock prices
Bitcoin mining revenue fell 18% month-over-month to $1.17 billion, a simple reflection of Bitcoin’s continued price correction from autumn highs. Bitcoin mining stocks were further pushed down by hawkish macro-conditions, leading to a general underperformance against Bitcoin (BTC) to start the year.
Bitcoin mining revenue remains elevated compared to previous cycles, even outperforming January 2021’s Bitcoin mining revenues by 16%.
Fee rate percent
Revenue fees remain low at around 1% of total monthly revenue. Lower fee environments can likely be attributed to an absence of retail players as described by a correlation between high fees and fast price increases. This is also due to the increase in efficiency per transaction, likely a feature of SegWit adoption.
“SegWit transactions are up to 40% more efficient when compared to older transactions. This means that as wallets continue to upgrade to SegWit addresses, the fees per payment should drop significantly… Currently sitting at 84%, SegWit payments had an extremely high adoption rate”
Mining stocks
January turned out to be a bearish intro to 2022 with most of the top public mining companies underperforming Bitcoin. Bitcoin stocks remain a high beta play on Bitcoin, the core commodity these firms create. As such, stocks suffered higher losses than Bitcoin itself.
Overall, Bitcoin’s price correction continues to hammer Bitcoin miners hard across the board. The base asset, transaction fees and proxies such as stocks continue to drop and will do so until a floor is found.
