Bitcoin mining profitability took a hit in August, as reported by investment bank Jefferies. The average daily revenue per exahash for miners dropped by 11.8% compared to July. This decline was attributed to a 4% decrease in the Bitcoin price and a 2.7% increase in the average network hashrate, indicating heightened competition among miners.
Looking ahead, Jefferies analysts Jonathan Petersen and Joe Dickstein have cautioned that September could bring further challenges for miners. With Bitcoin still below the $60,000 mark and the network hashrate on the rise, the profitability outlook remains subdued.
Despite these economic hurdles, the mining industry has seen improvements in operational efficiency. Jefferies noted that fewer extreme heat days during the summer months contributed to better uptime for major miners. For instance, Marathon Digital saw an 88% improvement in operational uptime in August, compared to 75% in August 2023. The top ten miners tracked by the bank also experienced a rise in average uptime to 83% from 76% a year ago.
In terms of market share, US-listed mining companies mined a smaller portion of new Bitcoin in August compared to the previous month, contributing 19.9% to the total network. Marathon led the pack by mining 673 BTC, followed by CleanSpark with 478 BTC. Marathon maintained the largest installed hashrate, with Riot Platforms coming in second.
It is essential to note that this information is not intended as investment advice. As the Bitcoin mining landscape continues to evolve, miners will need to navigate these challenges and adapt to changing market conditions to remain profitable.