Crypto Mining Metrics Roundup: Bitcoin Production Slips in September, Hashrate Climbs

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Cryptocurrency miners saw a slight drop in the number of bitcoins (BTC-USD) mined in September compared to August, as an increase in network hashrate and struggles cried trouble for profit margins.

The so-called difficulty of mining is a closely watched metric in the crypto ecosystem. It measures how difficult it is to mine a bitcoin (BTC-USD) block based on the number of participants and the computing power (hash power) used to operate and secure the blockchain. High difficulty (resulting from high hashing power), as is currently the case, tends to reduce the profitability of miners. Difficulty is currently hovering around record highs at 31.36 trillion versus 30.97 trillion a month ago, according to Data from blockchain.com.

The bitcoin network (BTC-USD) hash rate, which measures the computing power used to process transactions on the blockchain, sits at an all-time high of nearly 255 exahashes per second, in a move that underscores margin compression in the mining industry, according to blockchain data. .com. This is up from 225 p.e./s the previous month.

Despite a backdrop of higher network hashrate and difficulties as well as suppressed bitcoin (BTC-USD) prices, miner revenue rose slightly in September to $22.4 million at the end of the month, compared to $16.6 million at the start of the month, according to blockchain.com Data. Still, that’s down from $40.9 million a year ago.

Overall, bitcoin production from crypto miners (BTC-USD) fell 1.1% on average, while the hashrate jumped 10.6%, according to the chart below. Some companies have cited a shorter month as one of the main issues with lower BTC production.

Looking at the miners individually, Marathon Digital (MARA), CleanSpark (CLSK), and Iris Energy (IREN) were the only ones that produced more BTC than the previous month. Note that the following miners have yet to report their September numbers: Hive Blockchain (HIVE), BitNile (NILE), Argo Blockchain (ARBK), and Greenidge Generation (GREE).

Additionally, most miners continued to sell their bitcoin (BTC-USD) holdings as capital depleted amid soaring electricity prices, squeezing profit margins. During the month, Bitfarms (BITF) sold 544 BTC, Riot (RIOT) sold 300 BTC, CleanSpark (CLSK) sold 380 BTC, and Core Scientific (CORZ) sold 1,576 BTC.

For Bitfarms (BITF), in particular, SA contributor Gary Bourgeault believes that the company’s 10% drop in BTC production “may have been an anomaly.”

“The key for BITF through late 2022 and early 2023 will be the CPI release,” he added. “If things improve, high-growth assets will attract more investment, and BITF will benefit.”

Take a look at the chart here to see how miner stocks fared in September against bitcoin (BTC-USD).

Earlier last week (October 6), Grayscale launched a new unit to invest in bitcoin mining hardware following reduced prices.

2022
Company Teleprinter Type September August July
digital marathon (MARA) mined bitcoins 360 184 72 205.3
Bit Farms (BITF) mined bitcoins 481 534 500 505.0
hash rate (EH/s) 4.2 3.9 3.8 4.0
Riot Blockchain (RIOT) mined bitcoins 355 374 318 349.0
hash rate (EH/s) 5.6 4.8 4.2 4.9
CleanSpark (CLSK) mined bitcoins 448 395 384 409.0
hash rate (EH/s) 4.2 3.4 2.9 3.5
Hut 8 Mining (HUT) mined bitcoins 277 375 330 327.3
hash rate (EH/s) 3.7 2.97 2.92 3.2
Basic scientist (CORZ) mined bitcoins 1213 1334 1221 1256.0
hash rate (EH/s) 13 12.69 10.9 12.2
3d sphere (ANY) mined bitcoins 11.06 12.8 12.8 12.2
Iris Energy (IREN) mined bitcoins 325 301 154 260.0
Bitcoins mined on average 433.8 438.7 374.0 415.5
Average hash rate 6.14 5.55 4.94

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