The profitability of Bitcoin mining has experienced a notable decline in August, according to a report from Jefferies Financial Group. Mining profitability dropped by 5% during the month, largely attributed to an increase in the network’s hashrate. Jonathan Petersen, a seasoned analyst at Jefferies, noted that a hypothetical fleet of Bitcoin miners operating at one exahash per second (EH/s) would have generated approximately $55,000 in daily revenue in August, compared to about $58,000 in July and just $44,000 a year prior.
Hashrate, which represents the total computational power dedicated to mining and processing transactions on a proof-of-work blockchain, serves as an indicator of industry competition and mining difficulty. In August, U.S.-listed crypto mining firms managed to mine a total of 3,573 Bitcoin, a slight decrease from the 3,598 mined in July. Notably, these companies contributed to 26% of the Bitcoin network’s total output, a figure that remained constant from the previous month.
Among Bitcoin miners, Marathon Digital Holdings (MARA) produced the highest amount of Bitcoin in August, followed closely by Iris Energy (IREN). MARA continues to lead U.S. crypto miners with the largest hashrate at 59.4 EH/s, while CleanSpark (CLSK) ranks second with a hashrate of 50 EH/s, as highlighted by analyst Petersen.
The downturn in mining profitability aligned with a decrease in Bitcoin’s market price. The cryptocurrency reached a record high of over $124,000 in mid-August but subsequently fell below $110,000 at the beginning of September, reducing the overall attractiveness of mining activities.
In terms of market outlook, most Wall Street firms refrain from providing ratings or price targets for cryptocurrencies like Bitcoin. However, examining Bitcoin’s performance over the last three months reveals a modest 7.35% increase, presenting a mixed picture for potential investors.
