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

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Markus Thielen
April 23, 2024

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👇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?

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