Miners Cut Back on Bitcoin Production Amid Declining Profitability

Publicly traded mining companies CleanSpark, BitFuFu, and Canaan have cut back on Bitcoin production for the second consecutive month.

CleanSpark mined 586 BTC in July, a 5% drop from June's 614 BTC. BitFuFu's output fell by roughly 10%, from 125 BTC to 112 BTC. Canaan recorded the steepest decline, mining 46 BTC compared with 64 BTC in June, a drop of about 28%.

The three miners have shown different stock performance since the beginning of the year. CleanSpark shares rose 1.8% to $12.30 on Monday, bringing their year-to-date gain to about 6.4%. BitFuFu shares fell 5.5% to $1.37 and have lost more than half their value since the start of the year.

The decline in production is likely due to declining mining profitability. Rising network difficulty, high electricity costs, and the reduced block reward following the halving are putting additional pressure on margins, prompting some operators to diversify their revenue streams.