Bitcoin Mining Report from Investment Giant JPMorgan: ‘Levels Not Seen Since April Have Been Reached!

JPMorgan According to the research report, Bitcoin Miners saw their profitability rise for the second month in a row in December, reaching levels not seen since April.

JPMorgan Report: Bitcoin Mining Profitability Increased for the Second Time in December

The bank noted that the increase in Bitcoin’s price has outpaced the growth in the network’s hashrate, resulting in higher daily income and gross profit for miners.

JPMorgan estimates that miners earned an average of $57,100 per second (EH/s) in daily block reward revenue in December, a 10% increase from November.

According to analysts Reginald Smith and Charles Pearce, daily revenue and gross profit per EH/s are down 43% and 52% respectively compared to pre-halving figures.

The hashrate value, which measures the total computing power of the Bitcoin network devoted to mining, increased by 6% in December, reaching an average of 779 EH/s. However, the growth rate for 2024 was slower overall; hashrate is up 54% year-to-date, compared to a 103% increase in 2023.

Increasing Difficulty and Market Impact

Mining difficulty, a measure of how difficult it is to mine a Bitcoin block, increased by 7% in December and is now 27% higher than pre-split levels, the report said.

The market value of the 14 publicly traded Bitcoin mining companies tracked by JPMorgan fell 23% to $28 billion in December, following a strong 52% increase in November.

The report highlighted that among publicly traded miners, TeraWulf (WULF) is the only company to outperform Bitcoin in 2024, posting an annual gain of 136% compared to Bitcoin’s 120% increase.

As Bitcoin’s rally continues and mining profitability rises, industry participants will be watching for further developments in the mining ecosystem, especially in the lead-up to the expected market changes of 2025.

*This is not investment advice.