Jefferies: Average daily revenue of bitcoin miners fell by 2,6% in a month

What’s new? Analysts at Jefferies Bank have said that bitcoin mining profitability declined in September. They calculated that the average daily revenue per 1 EH/s fell by 2,6% for the month, while the network hashrate increased by 1,7%. The bank believes that October will be an even more difficult month, as bitcoin’s exchange rate rose only by 5%, while the network hashrate rose by 11%.

CoinDesk’s material

Hashrate is the total computational power in the bitcoin network. The mining difficulty determines the amount of computing power it takes to find a new block in the blockchain. The parameter changes every 2016 blocks, or about once every two weeks. This ensures that the time it takes to find a block is around 10 minutes.

What else is known? According to CloverPool (formerly BTC com), as of October 14, the hashrate of the Bitcoin network is 653,42 EH/s, which is 12% lower than the record set in early September. In turn, Bitcoin’s mining difficulty is at a record high of over 92 T.

In August, bitcoin miners’ profits fell to $851,36 million, including block mining rewards and transaction processing fees, which was the lowest since September 2023. The figure then set a new yearly low of $816 million as early as September.

In early October, analysts at JPMorgan Bank pointed out that the daily profit from mining was declining for the third month in a row, while hashrate was growing.

In general, the revenues of industry players began to decline in April, when another halving of the bitcoin network took place. This programmed event occurs every four years since the network’s launch and halves the reward for mining a block, slowing the maximum supply of 21 million bitcoins. This year it was reduced to 3125 coins.

Large companies have started to actively seek alternative sources of revenue, with the most popular way to diversify being leasing computing power to AI startups.

Canadian miner Hut 8 has started renting out GPUs for computation purposes

The initiative is part of a strategy to diversify revenue after halving

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Jefferies estimates that North American public miners mined 22,2% of bitcoins in September, adding up from 19,9% in August. Analysts attributed the increase in mining volume to the increase in data center uptime as a result of lower temperatures. During the warmer months, companies with farms in southern states sometimes have to shut down rigs due to increased energy demand.

Industry leader Marathon Digital (MARA) with a capitalization of $4,95 billion mined the most bitcoins (705), followed by CleanSpark (CLSK) with a capitalization of $2,53 billion and 493 coins mined.

Marathon’s hashrate remained the highest in the sector at 36,9 EH/s at the end of September. Riot Platforms (RIOT) ranked second with 28,2 EH/s.