Recent data from Blockchain.com suggests Bitcoin miners are confronting a revenue crisis even as the network’s hash rate reaches record highs. On August 18, the Bitcoin network achieved an all-time high hash rate of 414 exahashes per second (EH/s), marking an 80% increase over the past year and a 54% surge since the start of 2023. While elevated hash rates are generally considered a positive indicator for network security, they have not translated into increased profitability for miners.

According to data from HashPriceIndex, the revenue generated per terahash per second per day has dwindled to a mere $0.060. This is nearly half of what miners were earning in early May, raising questions about the sustainability of mining activities. Market analyst Dylan LeClair commented on the development, stating that although more efficient mining rigs continue to enter the market, Bitcoin prices need to adjust upwards to keep mining profitable at such elevated hash rates.

To mitigate the impact of falling revenue, some mining companies have turned to stock sales for financial sustenance. A Bloomberg report published on August 24 revealed that 12 major publicly traded mining companies raised approximately $440 million through stock sales in the second quarter of this year.

Mark Jeftovic, who runs the Bitcoin Capitalist newsletter, commented on this matter, stating: 

Some mining companies are diluting shareholders at an excessive rate. If they are diluting you faster than Bitcoin is going up, then you are going the wrong way on a treadmill.

Meanwhile, analysts have portrayed a bullish outlook for Bitcoin. Per an analysis by trader TradingShot on TradingView offers an optimistic outlook for Bitcoin’s price. According to the analysis, the moving average convergence divergence (MACD) bullish cross that occurred in the one-month timeframe approximately two months ago has historical significance dating back to 2014.

The analyst identified three prior instances when a similar bullish cross in the one-month MACD led to significant price rallies, often reaching the 0.786 Fibonacci retracement level. The only exception to this pattern was during the June 2019 period, which was influenced by the Libra hype. As such, the analyst predicts the price of Bitcoin to be as high as $50,000 by the end of 2023.