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.

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.

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