Bitcoin Miners' Fee Revenue Hits Historic Low Amid Hash Rate Decline

Bitcoin miners are facing a tough time as their fee revenue has hit a 10-year low. According to Rafael Schultze-Kraft, co-founder of Glassnode, on August 11 transaction fees accounted for only 0.69% of Bitcoin miners' revenue. This is the lowest level in almost a year, with the last lower figure recorded in April at 0.52%. The low share of fees has increased miners' dependence on Bitcoin's price.

The current block subsidy of 3.125 BTC is funding the majority of miners' rewards. At the time of writing, the estimated average cost of mining one coin was $78,254, while Bitcoin was trading around $64,100. This means that miners are struggling to stay profitable due to low hash rates and declining mining margins.

The blockchain's computational power is also decreasing, with a 33% drop in hash rate from its peak in October 2025. Analyst Will Clemente linked the trend to declining mining margins and the shift of some public companies' resources to AI and high-performance computing. Meanwhile, mining profitability remains low, with a hash price of $31.6 per PH/s per day.