Bitcoin Mining Plummets 7%: A Tale of Woe

by

Markets

What to know:

  • The once-mighty Bitcoin miners found themselves in a state of abject despair as their profitability nosedived by over 7% in September, a calamity attributed to the fickle nature of cryptocurrency prices and the relentless ascent of the network’s hashrate. 😢
  • The valiant public North American miners, in a display of stoic endurance, managed to produce a mere 3,401 bitcoin in September, a paltry figure compared to the 3,576 they conjured in August, with MARA and CleanSpark leading the charge like weary gladiators. 🏁
  • Revenue per EH/s, once a golden goose, now drips meagerly at $52,000 per day, a sad decline from $56,000 in August, as the Bitcoin price wavered and the network’s difficulty grew like a particularly aggressive moss. 🌿

Bitcoin mining profitability slid more than 7% in Sept. as the price of the world’s largest cryptocurrency fell 2% while the network’s hashrate jumped about 9%, according to investment bank Jefferies. One might say the crypto gods are in a particularly cruel mood. 😈

While the network’s hashrate has eased somewhat this month, the sharp decline in the bitcoin price has intensified pressure on miner profitability heading into the fourth quarter of 2025, the bank said in the report on Sunday. A future of uncertainty, it seems, is the only thing more volatile than Bitcoin itself. 🌀

The hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain, and is a proxy for competition in the industry and mining difficulty. Or, as one might call it, the modern-day gold rush with fewer golds and more headaches. 🏞️

Jefferies said that publicly listed North American miners produced 3,401 BTC in September, down from 3,576 BTC in August. Their share of the global network slipped to 25% from 26% the prior month. A slight drop, but enough to make even the most optimistic miner question their life choices. 🤔

MARA Holdings (MARA) led production with 736 bitcoin mined in September, up from 705 in August, while CleanSpark (CLSK) followed with 629 BTC, down from 657, the bank noted. A tale of two miners: one ascending, the other descending, like a tragic opera. 🎭

MARA’s energized hashrate remain’s the largest of the group at 60.4 exahashes per second (EH/s). CleanSpark held the second-largest position at 50 EH/s, according to the report. A duel of computational titans, if such a thing exists. ⚔️

Revenue generation also weakened alongside price. A theoretical fleet with 1 EH/s capacity would have earned roughly $52,000 per day in September, down from about $56,000 in August, the report said. That figure stood near $43,000 a year earlier. A steady decline, much like the stock market’s patience. 💸

Jefferies said the combination of lower bitcoin prices and rising network difficulty continues to tighten margins across the mining sector. A perfect storm of misfortune, if storms could be quantified in exahashes. 🌩️

The firm raised its Galaxy Digital (GLXY) price target to $45 from $37 and reiterated its buy rating on the stock. The shares were 3.5% higher in early trading, around $39. A fleeting moment of hope, like a sunrise in a desert. ☀️

The bank also raised its price objective for hold-rated MARA Holdings (MARA) to $19 from $18, the stock rose 5% to $20.55. A small victory in a sea of losses, but victory nonetheless. 🏆

Read More

2025-10-20 16:34