Bitcoin Maintains Gains Amid Increasing BTC ETF Inflows, Coinbase Premium, and Trump Tariff Rollback
Bitcoin (BTC) mining revenues have shown signs of stabilization, reaching $3.7 billion in Q4 2024, marking a 42% increase from the previous quarter. Revenues are expected to remain steady at around $3.6 billion in Q1 2025, according to recent data from Coin Metrics.
Mining Revenue Stabilizes Post-Halving
The recent uptick in mining revenue indicates that Bitcoin miners are adapting successfully following the network’s halving event in April 2024, which reduced block rewards from 6.25 BTC to 3.125 BTC per block. Halving events, occurring every four years, significantly impact miners’ profitability by cutting rewards in half.
“With almost one year elapsed since Bitcoin’s 4th halving, miners have endured a period of stabilization, adapting to reduced block rewards, tighter margins, and shifting operational dynamics,” Coin Metrics stated in its Q1 2025 Data Special report.
Potential Risks from Trade Wars
Despite the positive outlook, ongoing trade tensions could pose risks to miners’ profitability. Ben Yorke, VP of Ecosystem at WOO X, warned that renewed semiconductor tariffs could increase operational costs, potentially consolidating mining power among larger players and forcing smaller miners out of business.
“Should semiconductor tariffs return, Bitcoin mining could face higher costs, consolidating power among major players and forcing smaller operations to power down,” Yorke explained.
Miners Adapt to New Realities
Bitcoin miners have faced significant challenges in 2025, including declining cryptocurrency prices and reduced block rewards. However, well-capitalized miners have adapted by:
- Upgrading to more energy-efficient ASIC mining hardware.
- Relocating operations to regions with cheaper renewable energy sources, such as Africa and Latin America.
- Diversifying into artificial intelligence (AI) data-center hosting to leverage existing infrastructure.
For example, Bitcoin miner Core Scientific recently allocated 200 megawatts of hardware capacity to support AI workloads for CoreWeave.
Long-Term Holding Trends Impact Transaction Activity
Coin Metrics highlighted that increased transaction activity on the Bitcoin network could help sustain miners’ economic incentives post-halving. Currently, transactions below $100 represent approximately 60% of Bitcoin’s total transaction count, reflecting a trend where Bitcoin is increasingly viewed as a long-term investment rather than a medium of exchange.
“Bitcoin’s supply velocity, measuring the ratio of adjusted transfer volume to its current supply (rate of turnover), has declined over time, reinforcing the idea that BTC is increasingly held rather than transacted,” the report noted.
Quick Summary
- Bitcoin mining revenues stabilize post-halving, reaching $3.7 billion in Q4 2024.
- Miners adapt by upgrading hardware, relocating to cheaper energy regions, and diversifying into AI hosting.
- Potential semiconductor tariffs could threaten profitability and consolidate mining power.
- Bitcoin increasingly viewed as a long-term investment, reducing transaction velocity.
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