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Bitcoin Mining Profitability Drops 5% as Hashrate Hits New Highs

Bitcoin Mining Profits Drop 5% in August Amid Rising Network Hashrate, Increased Competition

  • Bitcoin mining profits dropped by 5% in August due to a higher network hashrate.
  • A one exahash-per-second (EH/s) mining fleet earned about $55,000 per day, down from $58,000 in July.
  • U.S.-listed mining companies produced 3,573 bitcoin in August, accounting for 26% of network output.
  • MARA Holdings led the group with the most mined bitcoin and highest hashrate at 59.4 EH/s.
  • Network hashrate—a measure of computational power—continues to rise, increasing competition and mining difficulty.

Bitcoin mining profitability declined by 5% in August as the total computational power on the network, or hashrate, increased. This was reported in a research note released Sunday by investment bank Jefferies.

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A hypothetical mining fleet with one exahash-per-second (EH/s) generated about $55,000 daily in revenue during August, compared to roughly $58,000 per day in July and $44,000 per day a year earlier. The report’s analysts, led by Jonathan Petersen, highlighted that the network hashrate acts as an indicator of both competition and the difficulty of mining new coins.

Analysts noted, “A hypothetical one EH/s fleet of BTC miners would have generated ~$55k/day in revenue during August, vs ~$58k/day in July and ~$44k a year ago.” In cryptocurrency mining, hashrate measures the total computational power used to mine or process transactions. Higher hashrate means more miners are competing, which raises the level of difficulty and can reduce profits.

In August, U.S.-listed mining companies collectively mined 3,573 bitcoin, slightly down from 3,598 in July. These companies maintained a consistent contribution, making up about 26% of all bitcoin mined during the month. MARA Holdings led with the highest production, mining a total of 705,703 tokens, followed by IREN, according to Jefferies.

The report also pointed out that MARA Holdings held the largest active hashrate in the group at 59.4 EH/s, while CleanSpark (CLSK) followed with 50 EH/s.

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For further information on the network’s rising power, see JPMorgan/” target=”_blank”>Bitcoin Network Hashrate Returned to All-Time Highs in August: JPMorgan.

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