Bitcoin mining profitability dipped in September, Jefferies report reveals

American banking firm Jefferies Investment has released a report showing that Bitcoin profitability fell in September. According to the report, the drastic change in profitability was due to the increasing hashrate and stagnant Bitcoin prices.

Bitcoin profitability fell drastically in September in comparison to its performance in August. The report revealed that hashrate rose by 1.7% compared to August, yet the price of BTC did not benefit from it.

The situation created issues for mining companies enduring closing profit margins. According to the report, some of the factors that contributed to the situation include technological upgrades, energy availability, and increased miner participation.

Average revenue per exahash drops

In the report, the average revenue per exahash recorded a dip of 2.6% from August. Jefferies noted that some of the factors that influenced it include rising mining costs, stagnant Bitcoin prices, and market issues arising from saturation.

Analysts Joe Dickstein and Jonathan Petersen have also talked about more issues for miners in October. They noted that this is due to the 5% gain that Bitcoin has enjoyed. Also, the network hashrate is up by 11%, which is more than Bitcoin’s growth. The analysts also clarified that the imbalance in the price of BTC and its hashrate growth could lead to a further decrease in profit margins for mining firms.

The report also mentioned that mining firms in North America mined more BTC in September than in August. These companies were responsible for about 22% of the network, registering an increase from August’s 19%. The increase is tied to the region’s lower temperature during the miner’s uptime.

Marathon Digital mines the largest cache of Bitcoin

Marathon Digital experienced huge success, mining about 705 BTC to take the top spot in Bitcoin mined. Cleanspark came second with a total of 493 BTC mined. Marathon also boasted the largest hashrate with about 36.9 exahashes per second while Riot Platforms came second with 28.2 exahash per second to the end of September.

The report also waded into the upcoming United States general elections, calling it the “Bitcoin election.” It noted that the crypto sector could get favorable policies regardless of who emerges as the winner. Although Donald Trump has been a voice for the crypto sector, the stance of Kamala Harris remains relatively unknown.

Per data from YCharts, Bitcoin miner’s revenue took a slight beating, dropping from $30.99 million on October 12 to $28.66 million on October 13. The Bitcoin hashrate presently stands at 679 EH/s, a rise from an all-time high of 679 EH/s recorded on October 11.

However, the hash price of the network has been experiencing a decline over the last two days. According to data Hashrate Index, the estimated value of 1 petahash per second is presently at $45.3, a slight decline from its $48.2 recorded on October 11. According to Coinmarketcap, Bitcoin is presently around $64,500, gaining about 2.4% in the last seven days.

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