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Earnings from Bitcoin mining dropped significantly in May as the effects of the fourth Bitcoin halving event set in.

The Bitcoin halving mechanism was designed to increasingly limit the issuance of 21 million Bitcoin (BTC)spread over decades. The April 20 halving reduced mining rewards to 3.125 BTC from 6.25 BTC.

While initial hype around the halving and the launch of Bitcoin Runes temporarily sustained the miners daily earnings, a strong revenue drop was recorded in May. On May 1, the total revenue earned from block rewards and transaction fees fell to a new low of $26.3 million.

In contrast, Bitcoin miners earned roughly $6 million per day on average before the halving, according to data sourced from Blockchain.com.

All the other days in May also recorded similar revenue patterns, signaling a new normal in Bitcoin mining revenue. Coincidentally, mining revenue peaked on April 20, marking an all-time high daily earnings of over $107 million for the first time in Bitcoin history.

Anticipating this significant drop, miners worldwide restrategized operations to remain profitable in the next phase of the Bitcoin economy. If not, miners would have to rely solely on Bitcoins high market value to support operations.

Read Cointelegraphs guide to learn more aboutbeing a profitable Bitcoin miner from home.

CryptoQuant CEO Ki Young Ju calculated that Bitcoin needs to hold above $80,000 to keep mining profitable post-halving under current conditions. However, most miners took proactive measures to upgrade their mining equipment to reduce long-term operational costs while being competitive.

Related:Bitcoin reaches one billion transactions

For example, Bitcoin mining firm Bitfarms allotted $240 million to triple its hash rate. Previously speaking to Cointelegraph, Bitfarms chief financial officer Jeffrey Lucas laid out the firms drive to procure 88,000 highly efficient Bitcoin miners:

Despite the effort, Bitfarms recorded its lowest monthly earnings of 269 Bitcoin in over two years in April.

Magazine: CZ gets jail sentence, Gensler viewed Ether as security, and FBI targets mixers: Hodlers Digest, April 28 May 4

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Bitcoin mining revenue hits post-halving yearly low - Cointelegraph