Bitcoin mining crossed the zetahash threshold in September because the community averaged 1.034 ZH/s, and hashprice fell beneath $47 per PH per second.
Based on a brand new report by The MinerMag, the step up in problem coincided with miners’ fairness values almost doubling since August to about $90 billion by October 15, whereas BTC fell 3.7 p.c over the identical interval.
The sector’s heart of gravity has shifted towards steadiness sheet capability, convertible debt, and high-performance computing contracts. Report problem has squeezed working margins, and energy prices have remained pinned close to fixed-rate agreements.
Based on the report, listed operators’ mixed market capitalization climbed from roughly $41 billion in August to $58 billion in September after which to $90 billion by mid-October, at the same time as hashprice revisited ranges final seen in Could.
PeriodCombined Market CapNotesAugust$41BStart of rally windowSeptember$58BContinued outperformance vs. BTCOctober 15$90BMore than doubled since August; BTC −3.7% in identical interval
The repricing tracks a story of digital-infrastructure publicity, the place miners current contracted energy, data-center buildouts, and AI colocation as incremental earnings streams which are much less tethered to dam rewards.
The MinerMag’s efficiency panel reveals that leaders over the previous month included Bitfarms, up 162 p.c, Canaan, up 149 p.c, and CleanSpark, up 125 p.c. MARA rose 39 p.c, Riot 32 p.c, and BTC down 3.7 p.c in the identical window.
The manufacturing league desk has reshuffled as fleets scale.
Per MinerMag’s September snapshot, MARA realized 53.3 EH/s, about 88 p.c of deployed capability, and mined 736 BTC, promoting roughly half. Bitdeer elevated its realized hashrate by one-third to 32.7 EH/s and moved into the fifth slot, whereas HIVE reached 19.3 EH/s and Cipher 18.2 EH/s as each pushed towards the 20 EH/s threshold that now informally defines the higher mid-tier.
These ranges set the backdrop for consolidation, website swaps, and power-density upgrades as operators search to qualify for hyperscale AI leases that require long-term, low-interruption energy.
Financing is the opposite pillar of the brand new regime. Miners raised greater than $1 billion within the second quarter via convertibles and near $3 billion already within the third quarter, with issuers spanning Cipher, MARA, and TeraWulf. IREN closed $1 billion, TeraWulf outlined plans for $3.2 billion in senior secured notes, and Bitfarms proposed $300 million in convertibles.
The construction of this cycle differs from 2021’s ASIC- and infrastructure-secured loans that later impaired, since in the present day’s zero-coupon convertibles push money curiosity out of the close to time period and depart the fairness conversion path open.
The trade-off is evident, if fairness momentum moderates, maturities twenty-four to thirty-six months out transfer into focus and the sector confronts both dilution via cashless conversions or money settlement in opposition to decrease share costs.
The economics on the rig degree anchor the dialogue.
Utilizing The MinerMag’s base case with energy at $0.06 per kWh, income runs close to $0.054 per TH per day. Payback durations span roughly 458 days for S19XP+ Hyd to about 900 days for S23 Hyd throughout effectivity bands from 9.5 to 19 J/TH, reinforcing the hole between fleets on the latest-generation curve and people additional again.
The report’s rule-of-thumb elasticities suggest {that a} 10 p.c change in income per TH per day strikes payback by roughly 10 to fifteen p.c, as a result of opex tied to joules per terahash dominates whereas near-term capex per TH is mounted.
That sensitivity makes problem and BTC path the first variables, with a possible 4 p.c problem aid flagged for the subsequent adjustment more likely to be transient.
Miner HardwareCapex per TH/sRevenue per TH/sRevenue per kWhOpex per TH/sPayback (Days)S23 Hyd (9.5 J/TH)$30$0.054$0.237$13.68900S21XP Imm. (13.5 J/TH)$18$0.054$0.167$19.44653S21+ Hydro (15 J/TH)$21.5$0.054$0.150$21.60846S21 Professional (15 J/TH)$16$0.054$0.150$21.60630S21 Imm. (16 J/TH)$15.5$0.054$0.141$23.04647S21+ (16.5 J/TH)$15$0.054$0.136$23.76645S19XP+ Hyd (19 J/TH)$9$0.054$0.118$27.36458
Operationally, the zetahash regime raises the bar for energy procurement, curtailment technique, and effectivity upgrades.
Operators with out sub-$0.05 per kWh energy or with out sufficient latest-generation joules per terahash face compressed margins till BTC reprices or sustained problem aid arrives.
The MinerMag’s eventualities define three near-term paths from in the present day’s base: if problem grinds larger and BTC stays flat, hashprice drifts 10 to twenty p.c decrease and paybacks prolong by two to 6 months for frequent air-cooled fleets; if the flagged problem aid arrives with solely a modest BTC bounce, a 5 to 10 p.c tailwind seems and fades; if BTC rerates whereas problem is flat, a 15 to 25 p.c hashprice raise pulls lower-efficiency rigs again towards mid-cycle paybacks utilizing the bottom desk as anchor.
The fairness story now hinges on execution in non-mining income.
The MinerMag’s current pipeline gadgets embrace a Google-backed $3 billion AI internet hosting initiative tied to Cipher, expanded credit score help for CleanSpark’s high-performance computing push, Galaxy’s $460 million Texas website construct framed as an AI hub, and the Microsoft-aligned Nscale and Ionic Digital settlement pegged at $14 billion.
These targets, whereas massive, require interconnects, transformers, and compute tenants to reach on time, and disclosures to translate headlines into run-rate income. If ramp schedules slip, fairness narratives constructed on data-center optionality converge again towards BTC beta.
Jurisdiction provides dispersion. The MinerMag cites new capability in Norway and Bhutan below hydro-rich frameworks, and Laos exploring dam-linked mining finance, every of which shifts the worldwide value curve by transferring incremental exahash into lower-cost buckets.
On the identical time, idiosyncratic dangers, from U.S. state litigation corresponding to circumstances in Kentucky to investigations round particular person European operators, translate right into a wider distribution of multiples as traders value regulatory and authorized variance by geography and company governance.
A easy runway lens ties the items collectively.
Map the third-quarter and fourth-quarter convertible issuers to an eighteen- to thirty-six-month refi clock.
In an up tape, fairness sits above conversion costs and cashless conversions retire debt whereas funding capex for brand spanking new websites and higher-efficiency rigs.
In a down tape, firms both problem shares into weak point or reserve money for settlement, curbing development capex.
Each paths feed again into community problem, as a result of capability additions in the present day increase baseline problem three to 6 months out, which in flip lowers hashprice until BTC outpaces the growth.
The MinerMag’s cycle description captures this reflexivity: fairness up, deal window open, capability up, problem up, every flip pressuring margins till BTC or charges take up the distinction.
For operators racing towards or previous 20 EH/s, scale and energy high quality present optionality, together with load-balancing throughout mining and AI tenants, treasury methods round BTC holdings and gross sales, and the latitude to pause or speed up expansions as energy markets transfer.
The MinerMag’s September desk reveals MARA promoting about half of its month-to-month BTC output, a stance that provides working money whereas holding some BTC beta. Others have leaned extra absolutely into issuances, site-level debt, or colocation prepayments. The dispersion in decisions will outline who can maintain paybacks inside the 500- to 700-day band if hashprice stays below the current baseline.
The numbers, and the financing combine behind them, depart the business priced as infrastructure with crypto torque.
Hashrate has moved right into a higher-pressure zone, equities have rerated on capability and AI pipelines, and the debt stack has shifted towards convertibles with a transparent refi window.
The MinerMag posits that the fast catalyst is proscribed to a potential single-digit problem aid, with economics nonetheless anchored by $0.06 per kWh energy and income close to $0.054 per TH per day.
The near-term job for miners is changing introduced data-center tasks and balance-sheet firepower into regular non-mining income whereas absorbing the zetahash baseline.
