Jefferies "September Bitcoin mining profitability down 7%... impact of rising hashrate"

September Bitcoin (BTC) mining profitability fell by more than 7%. Weak Bitcoin prices and a rise in the network hashrate pressured miners' profitability.

On the 20th (local time), according to CoinDesk, investment bank Jefferies said in a report, 'While the Bitcoin price fell by 2% in September, the network hashrate rose by about 9%,' and 'as a result, mining profitability decreased by more than 7% month-on-month.'

Jefferies said, 'The hashrate increase has somewhat eased in October, but price declines are adding further pressure to miners' profitability as we enter the fourth quarter.' The hashrate refers to the total computational power used for mining and transaction verification and is used as an indicator of industry competition intensity and mining difficulty.

Publicly listed North American miners produced a total of 3,401 bitcoins in September, down from 3,576 in August. The global share of North American miners also fell slightly from 26% to 25%.

Jefferies analyzed, 'Bitcoin price declines and rising network difficulty are occurring simultaneously, continuously reducing profits across the mining industry.' While still higher than the same period last year (about $43,000), the trend is slowing.