Bitcoin Miner Revenues Explode Thanks to Runes: Should You Load Up on Miners?

Trade Smarter, Not Harder: Leveraging RPCs for Competitive Advantage

QuickNode RPC enables seamless interaction with blockchain data, facilitating swift transactions and smart contract executions. This powerful tool empowers users to build dynamic DeFi applications, optimize trading strategies, and incorporate blockchain technology into their digital infrastructure, all while ensuring data accuracy and operational efficiency. QuickNode is the fastest provider and the expert in performance.

👇1-12) Bitcoin miner revenues have exploded with the launch of Runes, a new fungible token standard created by creative organelles. Runes allows people to inscribe arbitrary data on Bitcoin-like art. Runes remind us of Ordinals, which had an outsized impact on miners' revenues in late 2023 and early 2024 and was associated with a golden opportunity for Bitcoin mining companies. In later Q3, we made super aggressive mining calls that paid off (here).

👇2-12) Ordinals, unique identification numbers assigned to each satoshi on the Bitcoin blockchain, have sparked a resurgence in on-chain activity, leading to substantial transaction fees. Miners have reaped the rewards, with over $200m in transaction fees from Ordinals, constituting approximately 20% of their total revenue by February 2024.

👇3-12) Among other factors, this caused Bitcoin mining stocks to rally by +100% to +300% in Q4 2023 as ordinals massively contributed to the rewards for Bitcoin miners. Are Runes a replay of this period, and therefore, a massive rally for publicly listed Bitcoin miners, such as Marathon Digital, awaits?

Subscribe to Premium Membership to read the rest.