This has been ongoing for three consecutive months, putting pressure on their operating costs and business stability.
According to a JPMorgan report, the decrease in bitcoin mining profitability is due to increased competition and rising energy costs, despite the network’s hash rate increasing by 2% since August, reaching a record level of 643 EH/s.
On average, miners earned $42,100 per hour in September, which is 6% lower compared to the previous month. This decline is forcing many mining companies to seek ways to optimize their expenses.
Transaction fee revenue remained low, accounting for less than 5% of the total block rewards, further limiting profit growth opportunities.
Despite these challenges, the total market capitalization of the 14 largest U.S. mining companies increased by 4%, reaching $21 billion. The most notable growth was shown by Hut 8, whose shares rose by 20% in September, possibly indicating investor confidence and the company’s successful strategy amid the overall downturn. Other industry players are also actively expanding their capacities, which may lead to further changes in market dynamics in the coming months.
