The mining difficulty of Bitcoin has reached a new peak, with a 1.16% increase in the latest adjustment. This represents a significant rise over the past 90 days and the last three months. Despite the strong network performance indicated by the rising hash rate, miners are facing challenges due to halved block rewards and increased difficulty, which squeeze their profitability. CoinShares' Q3 Bitcoin Mining Report highlights the rising mining costs and competition for resources faced by miners. Hyperscalers are outbidding miners and increasing operational costs, while machine prices are expected to rise in correlation with Bitcoin's value. Miners are adopting strategies such as HODLing Bitcoin or exploring AI partnerships to open new revenue streams. Debt markets remain liquid but rising interest expenses and risks of insolvency are a concern. The average cash cost of mining Bitcoin rose in Q3, with companies like TeraWulf emerging as low-cost leaders.



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