Investing.com — Mining profitability recorded an increase for the second consecutive month in December, according to a research report from JPMorgan (JPM). The report said miners’ daily revenue and gross profit reached their highest level since April, although they remained significantly below pre-halving levels.
This rise in mining profitability is attributed to the continued rally of Bitcoin (BTC), the world’s largest crypto, which has grown faster than the network’s hashrate. The network hashrate, which represents the total computing power used to mine and process transactions on a proof-of-work blockchain, grew 6% in December, reaching an average of 779 exahashes per second (EH/s). ).
Bitcoin miners reportedly earned an average of $57,100 per EH/s in daily block reward revenue in December, an increase of 10% from November. However, according to JPMorgan analysts Reginald Smith and Charles Pearce, “daily revenue and gross profit per EH/s are still 43% and 52% below pre-halving levels, respectively.”
Mining difficulty increased by 7% from the previous month and is currently 27% higher than before the April rewards halving event. The hashrate saw a 54% increase in 2024, a slower pace compared to 2023’s 103% gain.
-In contrast to the rise in mining profitability, the total market capitalization of the 14 publicly traded Bitcoin mining company stocks tracked by the bank fell 23% to $28 billion in December, following a 52% increase in november.
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