CoinShares, a European digital asset specialist asset management company, has released a report indicating an increase in the average cash mining costs of listed Bitcoin miners in the third quarter to approximately $55,950. This marks a 13% rise compared to the second quarter ($49,500). When non-cash costs like depreciation and incentives are considered, the average mining cost climbs to around $106,000. According to the report, this increase is primarily attributed to three factors: 1. Artificial intelligence (AI) hype diverted mining companies' funds away from expanding mining operations. 2. Some mining companies prioritized currency holding strategies (HODL) over expanding their operating scale. 3. Rising electricity costs in Texas during the summer also contributed to the increase. This news follows a recent CoinShares report highlighting the impact of the Bitcoin halving on mining profitability. As the halving reduces the block reward miners receive, they must become more efficient to remain profitable. The rising mining costs reported in the latest update further emphasize the challenges miners face in maintaining profitability in a post-halving environment.

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