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<p>The Bitcoin mining sector is going through a difficult period. According to a recent report by JPMorgan, the profitability of mining operations has hit historic lows, a consequence of falling prices and increasing network hash rate.</p> 
<h2 id="h-a-double-whammy-hits-bitcoin-miners">A double whammy hits Bitcoin miners</h2> 
<p>The first half of September has been particularly challenging for <a href="https://www.cointribune.com/top-10-des-entreprises-de-minage-crypto/" target="_blank" rel="noreferrer noopener">publicly traded mining companies</a> in the United States. Two main factors explain their difficulties:</p>
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<p>On the one hand, the price of <a href="https://www.cointribune.com/en/bitcoin-is-at-great-risk-if-this-threshold-fails/" target="_blank" rel="noreferrer noopener">Bitcoin is stagnating below the symbolic $60,000 mark</a>, limiting the revenues generated by extracting new blocks. This price drop mechanically reduces the value of the rewards obtained by miners.</p> 
<p>On the other hand, the Bitcoin network hash rate has returned to pre-halving levels, indicating increased competition among miners. This rise in overall hashrate means that each miner must deploy more computational power to stand a chance of winning the race to validate blocks.</p> 
<p>This double-edged phenomenon, decreasing revenues and increasing costs, drastically squeezes the margins of industry players. JPMorgan <a href="https://www.coindesk.com/markets/2024/09/16/bitcoin-mining-profitability-remains-at-all-time-lows-as-prices-fall-hashrate-rises-jpmorgan-says/" target="_blank" rel="noreferrer noopener">estimates</a> that the “hash price,” a key indicator of miners’ daily profitability, has dropped by more than 50% compared to its pre-halving level.</p> 
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<h2 id="h-a-mining-landscape-in-full-transformation">A mining landscape in full transformation</h2> 
<p>Despite this bleak context, some interesting developments are taking shape:</p> 
<p>Publicly traded American miners seem to be pulling through, with their share of the global hashrate reaching a record level of 26.7%. This continuous increase over the past five months demonstrates the resilience and adaptability of these players.</p> 
<p>The combined market capitalization of these companies remains substantial, at nearly $20 billion, despite a 3% drop since the end of August. Some players like <a href="https://www.cointribune.com/hut-8-prend-la-tete-avec-8388-btc-en-reserve/" target="_blank" rel="noreferrer noopener">Hut 8 even manage to show positive performances</a>.</p> 
<p>The drop in the “hash price,” coupled with seasonal trends, could slow down the <a href="https://www.cointribune.com/en/bitcoin-mining-the-impact-of-the-hash-rate-on-profitability/" target="_blank" rel="noreferrer noopener">growth of the hash rate</a> in the short term. This temporary respite would allow miners to catch their breath and optimize their operations.</p> 
<p>In conclusion, <a href="https://www.cointribune.com/en/bitcoin-neglected-miners-migrate-to-ai/" target="_blank" rel="noreferrer noopener">the Bitcoin mining sector is going through a critical post-halving adjustment phase</a>. While the challenges are numerous, the industry’s capacity for innovation and adaptation suggests promising prospects for the most resilient players.</p>
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Bitcoin: Mining Profitability Collapses Despite Record Hashrate

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