According to a report from JPMorgan's research center, Bitcoin mining earnings saw a significant decline in the first half of September.
Decline in Mining Earnings
JPMorgan data indicates that the primary reason for the drop in Bitcoin (BTC) mining earnings is the price remaining below $60,000. Analysts noted that mining profitability has fallen by 2% year-to-date and is currently 50% below pre-halving levels.
Rising Hashrate and Impact
Bitcoin hashrate (a measure of the total computing power used to mine and verify transactions) increased by 4% this month, returning to pre-halving levels. High hashrate values indicate increased competition in mining. However, this negatively impacts profitability by increasing the costs of mining each coin.
Expert Analysis
JPMorgan analysts Reginald Smith and Charles Pearce noted that the rise in hashrate, combined with seasonal power outages, could slow the growth of computational power in the near term. Despite challenges, the share of US-listed mining companies in the global hashrate reached a record 26.7%, marking the fifth consecutive month of increase. In September, the combined market value of 14 tracked US mining companies fell by 3% to just under $20 billion. Among US companies, Hut 8 (HUT) performed best with an 11% gain, while CleanSpark (CLSK) was the worst performer with a 12% decline.
Mining companies continue to face economic challenges amid declining profitability. Seasonal factors and growing competition also need to be considered.
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