Bitcoin Mining Profitability Drops for Fourth Consecutive Month in November: JPMorgan
Bitcoin mining profitability declined for the fourth month in a row in November, JPMorgan (JPM) reported Monday.
Analysts Reginald Smith and Charles Pearce noted that daily block reward gross profits fell 26% compared with October. The Bitcoin network hashrate also slipped 1% to an average of 1,074 exahashes per second (EH/s), after hitting 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.
Hashrate measures the total computational power used to mine and process transactions on the proof-of-work blockchain and serves as a gauge of 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, boosted by its recent Fluidstack deal, while Bitdeer (BTDR) lagged with a 40% decline.
