Bitcoin Mining Profitability Declines Amid Rising Hash Rates

Bitcoin Mining Profitability Takes a Hit in September

Research from investment bank Jefferies has revealed a concerning trend in the Bitcoin mining industry, showing that profitability has decreased during September. This decline occurred despite the stability in Bitcoin prices.

Hash Rate Increases and Revenue Drops

The analysis notes that the network's hash rate, the total computational power used for mining, increased by approximately 1.7%. As a direct consequence, this rise led to a significant 2.6% drop in the average daily revenue per Exahash.

Challenges Ahead in October for Bitcoin Miners

Looking forward, the situation may worsen for miners. Although Bitcoin prices experienced a modest increase of around 5%, this was overshadowed by an increase in the hash rate by 11%, which likely will further compress earnings.

North American Mining Companies Gain Market Share

In a notable shift, North American publicly listed mining companies have increased their share of total mining from 19.9% in August to 22.2% in September. This indicates a growing dominance in the market.

Top Bitcoin Miners

• Marathon Digital: Mined the most Bitcoin, producing 705 BTC.
• CleanSpark (CLSK): Followed with a production of 493 BTC.

Conclusion

The findings indicate a tough road ahead for Bitcoin miners as they grapple with increasing operational challenges and diminishing returns. Stakeholders in the cryptocurrency space should stay informed about these trends and consider their implications for the future of Bitcoin mining.