Bitcoin Mining Economics Continue to Improve in December
According to a recent report by JPMorgan, Bitcoin (BTC) mining economics have seen a positive trend this month. The hashprice, which is a measure of daily profitability for miners, has increased by 5% compared to the end of November.
The rise in hashprice can be attributed to the recent rally in the price of Bitcoin, which has outpaced the increase in the network hashrate. The hashrate serves as a proxy for competition in the mining industry and mining difficulty, and it has increased by 6% month-to-date to an average of 773 exahashes per second (EH/s).
Analysts Reginald Smith and Charles Pearce noted that miners earned approximately $57,300 in daily block reward revenue per EH/s during the first two weeks of December. This represents the highest level in the last seven months, although it is still 40% below pre-halving levels.
The report also highlighted the performance of fourteen U.S.-listed miners, whose combined hashrate has surged by almost 94% year-to-date to 222 EH/s, now accounting for around 29% of the global network. Despite this growth, the total market cap of these miners has decreased by 4% or $1.5 billion, following a significant increase post the U.S. presidential election.
JPMorgan estimated that the U.S.-listed miners are currently trading at about two times their proportional share of the four-year block reward opportunity. This indicates that there may still be untapped potential for these miners to capitalize on the growing profitability of Bitcoin mining.
Overall, the report suggests that Bitcoin mining profitability has continued to improve in December, driven by the combination of a rising hashprice and a steady increase in the network hashrate. This positive trend bodes well for miners as they navigate the evolving landscape of the cryptocurrency market.
For more insights on Bitcoin mining profitability, you can refer to the original JPMorgan report titled “Bitcoin Mining Profitability Improved in November.”