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Homepage > News > Business > Block reward miners face the worst economics in BTC history Block reward miners are facing the worst economics in BTC history, pushing them to raise billions of dollars to fuel their AI expansion plans. November was indeed the cruelest month for BTC miners, who faced the most unfavorable operating environment in Bitcoin’s (nearly) 17-year history. This week, JPMorgan (NASDAQ: JPM) analysts reported that mining profitability declined again last month, marking the fourth consecutive month of declining fortunes. The daily block reward gross profit was down 26% from October, while daily revenue dipped 14% (-20% year-over-year). BTC’s fiat price tumbled from its all-time high of $126,080 on October 6 to $82,000 by November 21. Since then, it has rallied briefly, then fallen again to $84,500 on December 1, and rebounded yet again to over $93,000 by December 3. But the average all-in cost—including ASIC rig depreciation—of mining a single BTC token remains over $101,000, meaning this ball needs to bounce a lot higher (and stay there). The Miner Mag reported that revenue per PH/s has fallen from $55 in Q3 to $35 today, well below publicly traded miners’ estimated $44 median all-in cost base. As the Miner Mag so eloquently put it: “At this level, profitability stress is no longer theoretical; it’s systemic.” It hasn’t helped that the fees miners earn from the transactions in every BTC block have fallen to a 12-month low of around $300,000 per day, just 0.63% of overall miner revenue. Simply put, the long-term financial model envisioned by Bitcoin creator Satoshi Nakamoto—for transaction volume to rise and fees to eventually replace the block reward subsidy—has been broken by the market embracing BTC as ‘digital gold’ rather than ‘peer-to-peer electronic cash.’ Miners caught a modest break in late November as the…

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Filed under: News - @ December 4, 2025 2:29 pm