Bitcoin (BTC) mining profitability dropped in September, as the cryptocurrency’s price stagnated while the network’s hashrate a measure of computational power continued to climb, according to a Jefferies research report released Sunday.
The report highlighted that daily revenue per exahash fell by 2.6% compared to the previous month, reflecting higher competition and static BTC prices.
October Could Be Tougher for Miners
Jefferies analysts Jonathan Petersen and Joe Dickstein warned that October may bring more challenges for miners. “While BTC prices are up around 5%, the network’s hashrate has risen by 11%, more than offsetting that gain,” they noted.
With increased hashrate, more computational power is required to earn the same rewards, squeezing miners’ profit margins even further.
North American Miners Expand Market Share
The report also noted that North American-listed mining companies increased their share of total bitcoin production in September, rising from 19.9% in August to 22.2%. This expansion was attributed to improved operational uptime, as lower temperatures helped mining rigs perform more efficiently.
Among the top miners:
- Marathon Digital (MARA) produced 705 BTC, the largest haul for the month.
- CleanSpark (CLSK) followed with 493 BTC mined.
Marathon also maintained the largest installed hashrate, at 36.9 exahashes per second (EH/s), while Riot Platforms (RIOT) ranked second with 28.2 EH/s at the end of September.
Mining Outlook and Policy Impact
The report referenced the upcoming U.S. presidential election, which it called the “bitcoin election,” suggesting that policy shifts favoring the industry could be on the horizon regardless of the outcome.
As political uncertainty looms, miners are navigating increasing network difficulty and shifting economic conditions. Whether favorable policies emerge in the wake of the election remains to be seen, but growing hashrates and profitability pressures indicate a challenging period ahead.
