Bitcoin Mining Profitability Falls 7% to $52K as Hashrate Climbs
Jefferies reports that Bitcoin mining profitability dipped 5% in August to $55,000 per EH/s, down from $58,000 in July but up from $44,000 a year ago. In September, Bitcoin mining profitability fell a further 7% to $52,000 per EH/s as a 2% drop in BTC prices and a 9% rise in network hashrate squeezed miner margins. US-listed miners produced 3,573 BTC in August and 3,401 BTC in September, with Marathon Digital (MARA) leading output at 736 BTC and CleanSpark (CLSK) at 629 BTC last month. Rising mining difficulty and network hash rate continue to pressure miner stocks; however, year-on-year profitability remains stronger. Jefferies raised price targets on Galaxy Digital (GLXY) to $45 and on MARA to $19, maintaining buy ratings. Traders should monitor mining revenue trends as they could influence BTC supply dynamics and miner stock performance.
Bearish
The consecutive decline in Bitcoin mining profitability, driven by rising network hash rate and falling BTC prices, suggests miners face tighter margins and may increase BTC sell pressure to cover costs, weighing on price in the short term. Lower daily revenue per EH/s reduces miner incentives, potentially triggering additional supply at a time of constrained demand. Over the longer term, difficulty adjustments and sustained profitability above last year’s levels may help stabilize margins, but near-term market sentiment will likely remain cautious, making the overall impact bearish.