Bitcoin Mining Profitability Declines as Hashrate Surges

Jefferies recently reported a decline in Bitcoin (BTC) mining profitability for September, despite a surge in the network's hashrate.

Specifically, daily revenue per exahash fell by 2.6% month-over-month, indicating reduced earnings for miners as competition increased, with the hashrate rising by 1.7%.

North American Bitcoin mining firms boosted their production share from 19.9% in August to 22.2% in September, thanks to improved operational efficiency in cooler temperatures. Marathon Digital led with 705 BTC mined and a hashrate of 36.9 exahashes per second (EH/s), while CleanSpark followed with 403 BTC.

Looking ahead, October may pose challenges for miners, with an anticipated 11% increase in hashrate potentially outweighing a mere 5% rise in Bitcoin prices. After April’s halving, which reduced mining rewards from 6.25 BTC to 3.125 BTC, annual revenue losses for the industry could exceed $10 billion.

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The report suggests potential favorable policies for the mining sector regardless of the U.S. presidential election outcomes. In contrast, Bernstein posits that a Trump win could drive Bitcoin to new heights, while the market awaits clearer signals from Democratic candidate Kamala Harris.

Source

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.