Mining revenue is the total value of proceeds generated by cryptocurrency mining before deducting expenses. In a simple model, it is determined by the amount of cryptocurrency mined and its value in the selected currency.

Revenue may include block rewards received directly or amounts distributed through a mining pool. The calculation normally uses the amount generated during a specified period and a defined valuation method.

Revenue and income

The terms income and revenue are sometimes used interchangeably in mining materials. For economic analysis, however, it can be useful to define revenue as gross proceeds and income as a broader or differently adjusted measure.

After revenue is calculated, it can be compared with mining expenses to determine gross profit, net profit, or another defined financial result.

Factors affecting revenue

  • mining hashrate and operating time;
  • network difficulty;
  • block reward and emission rules;
  • market price of the mined cryptocurrency;
  • pool fees and payout conditions;
  • equipment downtime.

Revenue can also be normalized by hashrate using revenue per hash for equipment and operation comparisons.