Bitcoin miners earned $50B from BTC block rewards, fees since 2010

Bitcoin (BTC) miners have profited roughly 37% from mining Bitcoin since its inception, new data reveals.

Calculations from on-chain analytics firm Glassnode suggest that since 2010, fees and block reward subsidies have netted miners over $50 billion.

Bitcoin miner revenue passes $50 billion mark

Amid an ongoing debate over miner costs and susceptibility to Bitcoin price dips, new figures suggest that miners are firmly in the black in the long term.

According to Glassnode, miners’ total all-time income is almost 40% higher than their estimated costs, coming in at $50.2 billion versus $36.6 billion, respectively.

*Bitcoin miner thermocap vs. cumulative production cost annotated chart. Source: Glassnode/ Twitter*

Researchers generated the numbers using two metrics: thermocap and transaction fees, which are “the cumulative sum of issuance multiplied by spot price in addition to all-time generated fee revenue” and difficulty production cost.

In a dedicated report in late March, Glassnode explained the nuances behind the calculations while arriving at the 37% profit margin still in place today.

“In this model, the Thermocap and Transaction Fees can be considered the realized revenue by miners, whilst the Difficulty Production Cost is considered the aggregate mining input expense,” the report explains.

The results counter fears that too low a BTC/USD price could spark mass capitulation across the mining industry, which continues to grow.

Bitcoin network fundamentals support the argument, with difficulty and hash rate both hitting new all-time highs throughout 2023.

Current estimates from BTC.com, however, predict that this week’s difficulty adjustment will be the first negative one for Bitcoin since mid-February, 2023.

*Bitcoin network fundamentals overview chart (screenshot). Source: BTC.com*

Bitcoin transaction fees spike higher

Meanwhile, an influx of newly-created unspent transaction outputs (UTXOs) thanks to ordinals is rapidly making on-chain transactions less appealing this month.

Glassnode shows these created UTXOs spiking to their highest levels since 2015 in May, with fees rising accordingly.

*Bitcoin number of created UTXOs chart. Source: Glassnode*

Blockchain.com has the 1-day moving average transaction fee rate at $6.91 for May 2 — more than at any time since July 2021.

*Bitcoin fees per transaction 1-day average chart (screenshot). Source: Blockchain.com*

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.