TeraWulf COO reveals Runes as a crucial savior for Bitcoin miners

Bitcoin Runes, a new protocol for issuing fungible tokens on the Bitcoin network, is providing a significant boost in revenue for Bitcoin miners, according to TeraWulf’s co-founder and COO, Nazar Khan. In an exclusive interview with Cointelegraph, Khan explained that transaction fees are the “wild card” for Bitcoin miners, as the rest of the block reward remains fixed. This increase in transaction fees is particularly crucial for miners after the Bitcoin halving reduced block rewards from 6.25 BTC to 3.125 BTC. Despite a decline in total Bitcoin transaction fees since the halving, they have remained higher compared to most of 2023. On average, transaction fees have accounted for 30% of the Bitcoin block rewards since the halving, providing miners with an additional Bitcoin on top of the existing rewards. Khan also noted that with higher average transaction fees, TeraWulf’s Bitcoin production cost is likely to decrease, contributing to its profitability. TeraWulf, the eighth-largest Bitcoin mining firm, with a market capitalization of over $750 million, is planning further expansions despite the halving of block rewards.