Miner Revenue, Hashprice and Puell Multiple
What it is
Three related measures of mining economics. Miners are participants who use specialized computers to process transactions and add new blocks to the blockchain, and they are paid for this work with newly created coins and transaction fees. Miner revenue shows how much miners earn in total per day. Hashprice shows how much a unit of mining power earns. The Puell Multiple shows how today's miner revenue compares with its average over the past year.
How it is calculated
Miner Revenue (USD) = (Block Rewards + Fees) * Price (USD)
Hashprice = Miner Revenue (USD) / Hash Rate (TH/s)
Puell Multiple = Miner Revenue (USD) / SMA365(Miner Revenue (USD))
Block Rewards — new coins created by the protocol and paid to miners for each block, summed for the day. The reward is defined by the protocol and may be periodically reduced, for example cut in half during a halving.
Fees — transaction fees paid by users to have their transactions included in a block, summed for the day.
Price — the price of one coin in US dollars, used to convert daily revenue into dollars.
Hash Rate — the total computing power of all miners on the network, averaged over the day. It is measured in TH/s, where 1 TH/s equals one trillion attempts (hashes) per second to solve the computational puzzle required to add a block.
SMA365 — the 365-day simple moving average of daily miner revenue.
How to read it
Miner revenue rising or falling — miners are earning more or less in dollar terms, driven by the coin price, transaction fees and block rewards. Drops can be especially sharp after a halving.
Hashprice rising — each unit of mining hardware earns more, typically because of a higher coin price, higher fees or less competition from other miners.
Hashprice falling — each unit earns less because of a lower coin price, more competition (higher hash rate) or a halving. When hashprice falls below a miner's operating cost per TH/s (mainly electricity and maintenance), that miner operates at a loss and may shut down equipment.
Puell Multiple well above 1 — miners are earning much more than their past-year average and have a strong incentive to sell coins and take profits. Historically, extreme highs have coincided with overheated markets.
Puell Multiple around 1 — miner revenue is in line with the past-year average.
Puell Multiple well below 1 — miner revenue is far below its past-year average and miners are under financial stress. Historically, such periods have coincided with miners shutting down unprofitable equipment and with major market bottoms.
Miner revenue rising while hashprice falls — total income is growing, but the hash rate is growing even faster, so competition is eating into each miner's share.
What it is used for
Assessing mining profitability and the network's security budget, estimating hardware payback periods, and gauging potential selling pressure from miners, who regularly sell coins to cover costs. The Puell Multiple also helps put the current stage of the market cycle into context.
Limitations
All three metrics depend heavily on the coin price and show gross income only; they exclude electricity and hardware costs, so they do not show net profit. Hash rate is estimated from how quickly blocks are found rather than measured directly, so daily hashprice values can be noisy. A halving cuts block rewards overnight while the 365-day average adjusts gradually, keeping the Puell Multiple mechanically low for months afterward. Historical thresholds may shift across cycles. The metrics apply only to networks secured by mining (proof of work).