The reward for Bitcoin miners depends on the number of blocks they process. In the meantime, Bitcoin miners are generating more revenue with high processing fees, according to the statement of TeraWulf’s CEO, Nazar Khan.
Nazir Khan stated that the Runes network introduced issuing fungible tokens on the Bitcoin network. This will boost revenue for Bitcoin miners in a time of high transaction fees for Bitcoin.
“Runes significantly increased the transaction fees, so if anything, there was an increase in the hash price in the first 24–300 hours [after halving]. Since then, we’ve seen transaction fees come down, but compared to the average fees in 2023, they’re still pretty high.” Nazir Khan stated:.
The increase in transaction fees is a big help for Bitcoin miners, especially after post-halving, when the reward halves.
The transaction fees of Bitcoin drop back to 105 BTC after the halving, when the fees pump to 1257 BTC on the day of the halving, according to Cryptoquant data. Still, the transaction fees are much higher as compared to 2023.
Source: Cryptoquant
30% of the revenue generated by miners is because of high transaction fees. This is an extra bonus for Bitcoin Miners other than Bitcoin, which they are mining. Said Khan
“If you think about the 30% [average transaction fee] where it’s been the last few days, that’s almost one BTC, on top of the 3.125 BTC that are being issued as block rewards. So it is very significant.”
In 2023, transaction fees will make up about 10% of the reward for processing blocks. Now the average cost to mine a Bitcoin is $37,000, considering these 10% transaction fees, according to the Terawulf projection.
If the transaction cost increases, the average cost to mine a bitcoin will fall, resulting in more profitability for Bitcoin Miners.
“To the extent that transaction fees are higher than that, we will recognize a lower production cost. So even with 10% transaction fees, we will be very profitable, even post-halving.”
The net worth of Terawulf is over $750 million, according to the company’s market cap. This company is still planning for expansion, despite the reduction in reward after Bitcoin Halving.
Source: Companies market cap
