Bitcoin Mining Profitability Falls for Fourth Straight Month in November: JPMorgan
Bitcoin mining profitability declined for the fourth consecutive month in November, according to a Monday report from JPMorgan (JPM).
Daily block reward gross profits fell 26% from October, analysts Reginald Smith and Charles Pearce noted. The Bitcoin network hashrate also dropped 1% to an average of 1,074 exahashes per second (EH/s) after reaching a record high in October.
“Bitcoin miners earned an average of $41,400 per EH/s in daily block reward revenue in November, down 14% from October and 20% year-over-year,” the analysts wrote.
The hashrate, which reflects the total computational power used to mine and process transactions on the proof-of-work blockchain, serves as a proxy for competition and mining difficulty.
The combined market capitalization of the fourteen U.S.-based miners tracked by JPMorgan fell 16% month-over-month to $59 billion. Cipher Mining (CIFR) outperformed with a 9% gain, supported by its recent Fluidstack deal, while Bitdeer (BTDR) lagged with a 40% drop.
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