Several
leading U.S. publicly listed mining companies from Wall Street, including
TeraWulf, Riot Platforms, CleanSpark, and MARA, posted production gains in
October.
Although for some, the BTC production results were the highest since the halving, the recent JPMorgan report reveals a continued decline in industry-wide revenue and profitability. The report, which highlights a record-high network hash rate, points to increasing operational challenges and
intensifying competition across the sector.
TeraWulf Sees Modest Gains
with Efficiency Improvements
TeraWulf
(NASDAQ: WULF) reported
the mining of 150 Bitcoins in October, maintaining a daily average of
approximately 4.8 BTC. The firm’s operational self-mining capacity rose 62%
year-over-year to 8.1 EH/s.
Efforts to
reduce energy costs yielded an average power expenditure of $36,789 per BTC,
around $0.048 per kWh, a factor influenced by TeraWulf’s continued investment
in zero-carbon energy sources. Upgrades to Lake Mariner facility’s mining fleet
are underway, with older models being replaced by more efficient S19 XP miners,
aiming for a self-mining hash rate of 8.7 EH/s by year-end.
“October
marked another productive month, with TeraWulf mining 150 bitcoin and
sustaining an average daily production of around 5 bitcoin,” said Sean Farrell,
Senior Vice President of Operations at TeraWulf. “In line with our previously
outlined plans, we are accelerating the transition to more efficient mining
hardware by replacing older miners at Lake Mariner with S19 XP models.”
Riot Expands Hash Rate
with Corsicana Facility
Riot
Platforms (NASDAQ: RIOT) reported
a notable production increase with 505 bitcoins mined, a 23% rise from
September, and deployed hash rate growth to 29.4 EH/s, driven by enhancements
at its Corsicana, Texas facility. It is worth noting, that October’s production
output was the highest since the Bitcoin halving event in April.
Riot’s
Corsicana site, projected to reach a capacity of 1 gigawatt upon completion,
underpins the company’s long-term growth plans. Average power costs per
kilowatt-hour in October increased slightly to 3.9 cents due to rising energy
prices. Riot’s strategy includes further deployments at Corsicana and upcoming
investor presentations to discuss its expansion.
“In
October, Riot achieved a new post-halving milestone in production, with 505
Bitcoin mined in the month,” said Jason Les, CEO of Riot. “This 23%
increase in production from September is a reflection of both the ongoing
growth in our deployed hash rate and of the efforts to improve our operational
efficiency.”
MARA Eyes Record Capacity
with 40.2 EH/s Hash Rate
As Finance
Magnates already
reported yesterday (Monday) MARA (NASDAQ: MARA) also reported the highest
production since April’s halving, mining 717 Bitcoins, a 2% rise from the prior
month.
The
company’s energized hash rate grew 14% to 40.2 EH/s, moving it closer to its
goal of 50 EH/s by year-end. MARA’s focus on optimizing transaction fees, which
accounted for approximately 5% of its October BTC production, further
contributed to profitability amid high network competition. MARA continues to
rely on proprietary platforms like Slipstream and MARAPool to capitalize on
increased transaction fees.
“Despite a
slight month-over-month decrease in block wins, driven by the growth in global
hash rate and the resulting rise in difficulty level, BTC production increased
by 2% to 717 BTC,” said Fred Thiel, MARA’s Chairman and CEO
CleanSpark Accelerates
Growth with New Facilities and Acquisitions
CleanSpark
(NASDAQ: CLSK) achieved
a record 655 Bitcoins mined in October, marking a 32% month-over-month
increase. This growth aligns with the recent acquisition of GRIID
Infrastructure and further expansions in Tennessee and Wyoming.
CleanSpark’s
mining fleet now stands at an operational hash rate of 31.3 EH/s, supported by
its Knoxville facilities, which contribute an additional 5 EH/s. CleanSpark’s
power costs averaged 20.89 J/Th, and the company anticipates additional
capacity from turnkey operations in Mississippi by year-end.
“October
was another remarkable operational month in the books for CleanSpark,” said
CleanSpark CEO Zach Bradford. “There are just a few short months remaining in
the calendar year, but we have a handful of projects under construction that we
expect to come online and hashing before the start of 2025.”
Mining Revenue Declines
for Fourth Consecutive Month
Despite
increased production, JPMorgan’s report indicated that BTC mining revenue and
gross profit fell for the fourth consecutive month in October. Daily block
reward gross profit dropped 2% to its lowest level on recent record, as miners
earned an average of $41,800 per EH/s in daily block rewards – 1% less than in
September.
The bank
noted that the monthly average hashrate for the Bitcoin network surged to a
record 702 EH/s, marking a 9% increase from the prior month and 62%
year-over-year, contributing to higher mining difficulty and operational strain
across the industry.
Transaction
fees, which rose as high as 60% of the block reward in late October, provided
some revenue relief for miners, though JPMorgan emphasized that these fees
remain variable. In terms of market performance, the 14 publicly listed Bitcoin
mining firms from Wall Street tracked by JPMorgan, including companies with
exposure to high-performance computing (HPC), saw a collective 14% rise in
total market cap to $23.9 billion.
This article was written by Damian Chmiel at www.financemagnates.com.
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