Bitcoin Mining Struggles in September

Bitcoin miners faced a challenging start to September as the network hashrate returned to pre-halving levels, leading to a drop in profitability and increased competition. JPMorgan warned that the combination of declining profitability and seasonal factors could lead to a slowdown in hashrate growth in the near term.

Shift in Mining Strategies

Companies like Cathedra Bitcoin have shifted strategies and are moving away from mining to focus on increasing Bitcoin holdings, while big players like MicroStrategy continue to raise funds through debt offerings to buy even more Bitcoin. This shift is driven by the belief that increasing Bitcoin per share is more valuable than mining operations.

Market Uncertainty Looms

There is still a lot of market uncertainty about what BTC's next move will be as analysts are divided on how upcoming rate cuts and political developments will impact Bitcoin's price. This uncertainty is adding to the challenges faced by Bitcoin miners.

U.S. Miners Gain Ground

The report revealed that U.S.-listed miners have increased their share of the network hashrate for the fifth consecutive month, reaching a record high of 26.7%. However, the total market capitalization of the fourteen U.S.-listed Bitcoin mining companies tracked by the bank dropped by 3% since the end of August.

Cathedra Bitcoin's Shift

Cathedra Bitcoin is shifting its focus from mining operations to buying Bitcoin on the open market, following the strategy of firms like MicroStrategy. The company acknowledged that Bitcoin mining did not deliver sufficient shareholder value, and it plans to develop data operating centers that generate predictable cash flows to fund its Bitcoin acquisition efforts.

Source: https://coinpaper.com/5389/jp-morgan-warns-of-slowing-bitcoin-mining-growth-as-profitability-dips

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