Bitcoin Mining Profitability Declines 5% in August Amid Higher Hashrate

Jefferies reports a drop in miner earnings as network hashrate rises, with MARA Holdings leading U.S. production capacity.

BTC

Summary

Bitcoin mining profitability fell 5% in August, according to Jefferies, due to an increase in network hashrate. Miners operating at 1 EH/s earned roughly $55,000 per day, down from $58,000 in July but up from $44,000 a year prior. Publicly listed U.S. miners produced 3,573 BTC in August, slightly less than July’s 3,598 BTC, maintaining a 26% share of the total network hashrate. MARA Holdings led with 705,703 BTC mined and the highest available hashrate at 59.4 EH/s, followed by CleanSpark at 50 EH/s and IREN in production volumes.

Terms & Concepts
  • Hashrate: The total computational power used to mine and process transactions on a blockchain network. Higher hashrate indicates stronger network security but can reduce mining profitability.
  • EH/s (Exahashes per second): A measure of computational mining power, representing one quintillion hashes calculated per second.
  • Bitcoin Mining Profitability: A calculation of revenue miners earn from producing Bitcoin, influenced by factors like hashrate, Bitcoin price, and block rewards.