Bitcoin mining profitability has improved this December, with the hashprice—a key measure of daily revenue for miners—rising 5% since the end of November, according to a JPMorgan (JPM) report published on Monday.
The boost in hashprice has been driven by Bitcoin’s recent price rally, which has outpaced the growth in network hashrate, a metric reflecting mining competition and difficulty. The global network hashrate has risen 6% month-to-date, averaging 773 exahashes per second (EH/s), the report highlighted.
“Miners earned roughly $57,300 in daily block rewards per EH/s during the first half of December,” analysts Reginald Smith and Charles Pearce wrote. This marks the highest level of profitability in seven months but remains approximately 40% lower than pre-halving figures.
The report also noted that the combined hashrate of 14 publicly traded U.S. mining firms tracked by JPMorgan has grown 94% year-to-date, reaching 222 EH/s. These companies now account for roughly 29% of the global network’s computing power.
Despite operational gains, the market capitalization of these U.S.-listed miners dropped by 4%, or $1.5 billion, in December. This decline follows a sharp 50% increase in valuations immediately after the U.S. presidential election.
JPMorgan further observed that these listed miners are currently trading at valuations twice their proportional share of the four-year block reward opportunity, reflecting bullish market sentiment and expectations for continued industry growth.
