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bitcoin

Bitcoin Mining Profitability Slumped In September – What’s In Store For October?

Ash Tiwari
by Ash Tiwari
10 months ago
·
Posted in Bitcoin Mining
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

According to a recent report by Jefferies, Bitcoin (BTC) mining profitability declined in September while the network hashrate continued to surge. 

Bitcoin Mining Profitability On A Downtrend

In a report published on Sunday, investment bank Jefferies outlined that Bitcoin mining profitability plummeted in September compared to August. Specifically, the daily revenue per exahash fell by 2.6% month-over-month (MoM).

Related Reading: Ethiopia Signs On: 600MW Of Energy To Supercharge Bitcoin Mining

For the uninitiated, daily revenue per exahash refers to the amount of BTC that miners earn for each exahash – 1 quintillion hashes – of computational power they contribute to the network daily. 

The metric helps measure the profitability of mining operations by showing how much revenue miners generate based on the collective power they dedicate to solving Bitcoin’s cryptographic challenges.

During the same period, while the average BTC price remained stagnant, its network hashrate surged by 1.7%, indicating that more computational power is being dedicated to securing the network, making it more resilient to attacks. However, rising hashrate also trims miners’ profit margins due to heightened mining activity and competition.

bitcoin
Bitcoin network difficulty continues to rise amid range-bound price action | Source: Blockchain.com

Notably, North America-based Bitcoin mining firms increased their share of total BTC production, rising from 19.9% in August to 22.2% in September. The report attributes the increase to better uptime from these companies due to lower overall temperatures. 

Among the Bitcoin mining firms, Marathon Digital mined 705 BTC, followed by CleanSpark, which mined 403 BTC. Marathon also leads the industry with the highest hashrate at 36.9 exahashes per second (EH/s) as of September 30, 2024. Riot Platforms follows closely with 28.2 EH/s.

Although Chinese mining pools still control most BTC hashrate, US-based mining pools are rapidly catching up. As of September 23, China and the US collectively controlled 95% of all Bitcoin hashrate, casting serious concerns about the network’s decentralization narrative.

October is Poised To Be A Challenging Month

In the report, Jefferies posited that October could likely be a tougher month for the BTC mining sector. The report reads:

October is currently poised to be a harder month with BTC prices only up around 5%, while the network hashrate up +11% more than offsets that growth.

Related Reading: Bitcoin Hashrate Closes In On ATH After Sudden 9% Jump: Price Next?

In April 2024, Bitcoin underwent its fourth halving that effectively slashed mining rewards by half, from 6.250 BTC to 3.125 BTC. According to analysts, the halving is expected to lead to annual revenue loss to businesses worth over $10 billion.

The report concludes that regardless of who wins the upcoming US presidential elections in November, there are chances of witnessing “incrementally favorable policies toward the industry.” 

In contrast, another US-based investment firm Bernstein opines that a win for Republican candidate Donald Trump could propel BTC price to new all-time highs (ATH). At the same time, the market requires a clearer stance from the Democratic candidate Kamala Harris. BTC trades at $65,073 at press time, up 4.0% in the last 24 hours.

bitcoin
BTC trades at $65,073 on the daily chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Charts from Blockchain.com and TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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