Bitcoin Miner Fee Revenue Falls to Lowest Level in a Decade

Bitcoin transaction fees now make up just 0.69% of total miner revenue, only a slight recovery from a 10-year low of 0.52% recorded in April, according to data from onchain analytics platform Glassnode. Fee income has stayed below 1% of miner revenue for nearly a year, a level last seen when bitcoin traded under $400.

Miners Increasingly Rely on Block Rewards

With fee income shrinking, miners are leaning more heavily on the fixed block subsidy, currently set at 3.125 BTC per block, for their income. Since bitcoin has fallen nearly 50% from its October 2025 peak, the dollar value of that subsidy has dropped as well, tightening margins further. The average cost to produce one bitcoin is now estimated at over $78,000, well above the current market price.

Hash Rate Declines as Miners Pivot to AI

Bitcoin’s network hash rate has fallen 33% since its October 2025 peak, reflecting a shift among major mining companies toward AI and high performance computing operations, which analysts describe as increasingly attractive compared to traditional mining. Some companies have already restructured their business around AI infrastructure, while others have shut down US mining operations entirely following steep revenue declines.

Analysts Flag Long-Term Network Concerns

Industry analysts have called the AI pivot among major miners one of the most overlooked developments affecting bitcoin’s network this year, warning that the trend has accelerated in recent months as bitcoin has underperformed AI-related assets.