TeraWulf CEO highlights how Runes are providing a vital lifeline for Bitcoin miners

Bitcoin Runes, a new protocol for issuing fungible tokens on the Bitcoin network, is proving to be a lucrative source of revenue for Bitcoin miners, according to Nazar Khan, the co-founder and CEO of TeraWulf. In an exclusive interview with Cointelegraph, Khan explained that transaction fees play a crucial role for miners, especially since the recent Bitcoin halving reduced block rewards from 6.25 BTC to 3.125 BTC. Despite a decline in total transaction fees, which dropped from 1,257 Bitcoin on April 20 to 105 Bitcoin on April 25, fees have remained higher compared to most of 2023. On average, transaction fees have accounted for 30% of Bitcoin block rewards since the halving, offering miners an additional Bitcoin on top of their existing rewards. This has led to a decrease in TeraWulf’s Bitcoin production cost and an increase in profitability. Despite the halving, TeraWulf, which currently holds the eighth-largest market capitalization among Bitcoin mining firms, is planning further expansions.