Simply put
- The Bitcoin network mining difficulty has reached a historic high of 129 trillion, making it more challenging for miners to earn rewards, especially as Bitcoin’s price has recently declined.
- Miners are seeing squeezed revenues, with hash prices dropping to $60 per petahash and trading fees dipping below 1% of block rewards for the first time.
- Import tariffs on mining equipment have risen to 57.6%, adding to the financial strain, with CleanSpark facing a potential liability of $185 million and $100 million on IRIS Energy.
Despite Bitcoin’s recent stabilization after peaking, network activity surged, causing mining difficulty to climb to new heights.
The network’s difficulty hit a record 129 trillion, a 6.4% rise over the last three months, according to Coinvalz.
Such extreme difficulty levels were nearly reached in early June; the tougher conditions make it harder for miners to successfully add new blocks and reap rewards.
Some relief could be on the horizon, as the difficulty, which is automatically adjusted roughly every two weeks, is predicted to decrease by 0.33% on August 22.
Nevertheless, the major concern remains the drop in revenues for Bitcoin miners, as noted by Nishant Sharma, founder of Block Bridge Consulting, in his latest newsletter.
Sharma pointed out that the revenue per unit of hash power has fallen to $60 per second per petahash. “This illustrates the ongoing pressure on miner margins, as the increasing difficulty continues to overshadow profits from price rises,” he added.
Meanwhile, trading fees have fallen below 1% of block rewards for the first time, with miners’ income coming from static block rewards of 3.125 BTC per block and transaction fees from users.
“In July, fees represented just 0.985% of the total monthly block reward, marking the first instance this proportion dipped below 1%,” Sharma mentioned.
The broader situation for Bitcoin miners has not been helped by tariffs imposed by U.S. President Donald Trump on imports of mining rigs from various nations. Currently, imports from China face a 57.6% tariff, with tariffs of 21.6% on imports from Indonesia, Malaysia, and Thailand.
These tariffs have adversely affected two U.S. mining firms. U.S. Customs and Border Protection has issued invoices to Iris Energy and CleanSpark for mining rigs imported in 2024.
“CleanSpark noted that if CBP’s stance is upheld, their potential tariff liability could reach $185 million,” Sharma noted. “Aylen is also confronting a $100 million dispute with CBP under similar conditions, and both companies are contesting CBP’s claims.”
