Mining for Bitcoin (BTC) continues to become less profitable, according to a new research report from Jefferies Financial Group (JEF).
Bitcoin mining profitability declined in September, continuing a downward trend that began this spring after the largest cryptocurrency by market capitalization underwent a halving event.
A halving event reduces the available supply of Bitcoin, and the rewards for mining it, by 50%.
Bitcoin is mined using large banks of computers that complete mathematical equations to earn BTC tokens.
Jefferies said in its research report that mining for Bitcoin has become less profitable as the cryptocurrency’s price remained largely unchanged while its network hash rate rose 1.7% during September.
The New York-based investment bank also noted that the average daily revenue generated from mining Bitcoin decreased by 2.6% between August and September.
Jeffries noted that the situation in October is looking even worse, with Bitcoin prices up about 5% while the network hash rate has risen 11%, offsetting that price increase.
During September, Marathon Digital (MARA) mined the largest number of Bitcoin at 705 digital tokens, while CleanSpark (CLSK) came in second having mined 493 BTC.
Jefferies also noted the wave of consolidation that has swept the Bitcoin mining industry since the halving event this April, saying such consolidation is likely to continue in coming months.
