Bitcoin mining profitability fell in September, according to Jefferies report

Jefferies investment banking firm released a report indicating Bitcoin mining profitability fell in September. According to the report, miners had difficulty dealing with increasing hashrate and stagnant BTC prices.

Bitcoin mining profitability fell in September compared to August. A Jefferies report revealed that Bitcoin’s hashrate surged by 1.7% compared to August, yet the BTC price largely remained neutral. 

The circumstances created a difficult situation for mining companies that endured tightening profit margins. The report attributed the increased hashrate to several factors, including technological upgrades, increased miner participation, and energy availability.

The average revenue per exahash dipped by 2.6% from August

$BTC mining profitability dropped in September as hashrate rose 1.7%, while prices stayed mostly flat.

vg daily revenue per exahash fell 2.6%. North American miners took 22.2% of network share, led by Marathon Digital (705 BTC) and CleanSpark (493 $BTC). pic.twitter.com/NFLmiKYwOU

— Satoshi Club (@esatoshiclub) October 14, 2024

The Jefferies report revealed that the average revenue per exahash dipped by 2.6% from August. Jefferies attributed the dip in revenue per exchange to several factors, including stagnant Bitcoin prices, rising mining costs, and market saturation challenges.

Analysts Joe Dickstein and Jonathan Petersen believe that October could have more headwinds for miners than September since BTC price is up 5%, yet the network hashrate is up 11%, which is more than Bitcoin’s growth. The analysts wrote that the declining imbalance between Bitcoin’s price and hashrate growth could lead to further deterioration of profit margins for Bitcoin mining companies.

The report also revealed that listed North American mining companies mined more Bitcoin in September than in August. These companies covered up to 22% of the total network, which is an increase from August’s 19.9%. The increase is credited to lower temperatures experienced in the month during the miners’ uptime.

Marathon Digital records the largest amount of mined Bitcoin

Marathon Digital (MARA) recorded the largest amount of BTC mined with 705 BTC. CleanSpark (CLSK) trailed behind MARA with 493 mined BTC. MARA had the largest hashrate at 36.9 exahashes per second (EH/s) towards the end of September, while Riot Platforms (RIOT) was second with 28.2 exahashes per second. 

The report also mentioned the forthcoming November U.S. elections, terming it the “Bitcoin election.” The report noted that more favorable policies on crypto and the DeFi industry could come to light regardless of whoever wins. Although Donald Trump has publicly endorsed the industry, Kamala Harris’ stand on crypto remains murky and unclear.

According to data from YCharts, BTC miners’ daily revenue fell from $30.99 million recorded on October 12th to $28.66 million registered on October 13th. The Bitcoin network’s hashrate currently comes in at 679 EH/s at the time of this publication, up from an all-time high of 696 EH/s recorded on October 11th.

The network’s hash price has been declining in the past two days. Data from the Hashrate Index shows that the estimated daily value of 1 petahash per second (PH/s) is currently at $45.3, down from $48.2 recorded on October 12th.

According to Coinmarketcap, Bitcoin is hovering at $64,757 and has gained 3.33% in the last 24 hours and 2.74% in the last seven days.