Bitcoin mining stocks saw remarkable growth in September, outperforming Bitcoin even as the industry faces economic tightening and longer hardware payback periods.
Shares of top mining companies including Cipher Mining, Terawulf, Iris Energy, Hive Digital Technologies, and Bitfarms surged between 73% and 124% over the last month. In contrast, Bitcoin’s price declined by over 3% during the same time frame.
This impressive rally occurred despite ongoing pressure on mining fundamentals. The upcoming Bitcoin network difficulty adjustment is projected to increase by approximately 4.1%, marking the first time the average hashrate exceeds the zetahash threshold.
Bitcoin’s 14-day moving average hashrate crossed the 1 zetahash milestone in September. However, this has not alleviated profitability challenges for miners.
Hashprice remains below $55 per petahash per second, impacted by growing network activity, while transaction fees have dropped below 0.8% of monthly rewards, signaling reduced onchain activity.
Investors are rewarding mining companies that are pivoting towards GPU and AI technology. Hive Digital is accelerating its shift to AI-powered data center infrastructure, Iris Energy is expanding using Blackwell GPUs, and Terawulf gains momentum through a high-performance computing partnership with Google.
Continued Accumulation by Bitcoin Miners
In the face of narrowing profit margins, increased operational costs, and competition, Bitcoin miners are diversifying to sustain growth and profitability.
Many miners are not only integrating AI and high-performance computing into their operations but are also adopting treasury strategies by holding a larger share of mined Bitcoin, anticipating future price appreciation.
This shift towards retention intensified through 2024, as highlighted by recent reports, showing miners accumulating more Bitcoin rather than selling immediately.
Data reveals increasing wallet balances for miners over three consecutive weeks, with a peak net inflow of 573 BTC on September 9—the largest daily rise since October 2023.
Such strategic moves indicate miner confidence in long-term Bitcoin value and a growing commitment to technological innovation in the sector.
