Bitcoin miners with high-performance computing (HPC) exposure have underperformed Bitcoin’s price for the third month in a row, according to a report from JPMorgan.
While Bitcoin’s price has been relatively stable, miners heavily reliant on HPC technology, such as Marathon Digital (MARA), Bitfarms (BITF), and Core Scientific (CORZ), have failed to keep up with its momentum. This continued underperformance has raised concerns about the profitability of miners in an environment of increasing computational complexity and higher operating expenses.
JPMorgan pointed out that the gap between Bitcoin’s price growth and mining stocks is widening due to rising mining difficulty and the increasing number of miners competing for rewards. With mining difficulty at near-record levels and electricity costs climbing, miners with HPC-focused strategies are facing challenges in maintaining their profit margins.
“Despite Bitcoin’s stable market performance, miners with HPC exposure are struggling to outperform, leading to the third consecutive month of lagging performance,” the report highlighted.
However, some miners are adapting by shifting their focus toward more energy-efficient operations and diversifying into renewable energy sources to reduce costs. Companies like CleanSpark (CLSK) and Hut 8 Mining are taking steps to improve their operations, but they are still under pressure to manage rising overheads in a competitive environment.
The report suggests that miners will need to innovate and adjust their strategies to remain profitable as the difficulty level and competition within the Bitcoin mining industry continue to intensify.
