April’s Surge in Bitcoin Network Hashrate Led to Lower Mining Profits, According to Jefferies

Rising Bitcoin Network Hashrate Pressures Mining Profitability in April, Says Jefferies

Bitcoin mining profitability took a hit in April as the network’s hashrate increased, signaling heightened competition among miners, according to a new report by Jefferies.

Investment analysts Jonathan Petersen and Jan Aygul reported that mining profitability declined by 6.6% in April, primarily due to a 6.7% rise in the Bitcoin network hashrate — the aggregate computational power securing the blockchain. An elevated hashrate typically corresponds to increased mining difficulty, reducing individual miner rewards.

The report also highlighted a dip in bitcoin production from U.S.-listed mining firms. Collectively, these companies mined 3,277 bitcoins in April, down from 3,534 in March, accounting for 24.1% of total network production, compared to 24.8% in March.

Leading the sector, Marathon Digital Holdings (MARA) mined the largest volume at 705 BTC, followed by CleanSpark (CLSK) with 633 BTC. Marathon also maintained the highest installed hashrate at 57.3 exahashes per second (EH/s), while CleanSpark ranked second with 42.4 EH/s.

In terms of operational efficiency, Iris Energy (IREN) recorded the highest uptime at approximately 97%, with HIVE Digital Technologies (HIVE) close behind at 96%.

As the Bitcoin network grows more competitive, miners face ongoing pressure to enhance operational efficiencies to sustain profitability.