Bitcoin Mining Profitability Sees Improvement Amid Rising Hashrate

According to CoinDesk, Bitcoin mining economics have shown signs of improvement this month, with the hashprice—a measure of daily profitability—rising by 5% since the end of November, as reported by JPMorgan in a recent research note. This increase in hashprice is attributed to the rally in Bitcoin's value, which has outpaced the growth in the network's hashrate. The hashrate serves as an indicator of competition within the industry and reflects mining difficulty. JPMorgan's report highlights that the network hashrate has grown by 6% month-to-date, reaching an average of 773 exahashes per second (EH/s). Analysts Reginald Smith and Charles Pearce noted that miners have earned approximately $57,300 in daily block reward revenue per EH/s during the first two weeks of December. This figure represents the highest level in the past seven months, although it remains about 40% below pre-halving levels. The report also mentions that the combined hashrate of the fourteen U.S.-listed miners tracked by the bank has surged nearly 94% year-to-date, reaching 222 EH/s. These miners now contribute to around 29% of the global network's hashrate. Despite this growth, the total market capitalization of these miners has decreased by 4%, or $1.5 billion, following a more than 50% increase after the U.S. presidential election. JPMorgan estimates that U.S.-listed miners are currently trading at approximately twice their proportional share of the four-year block reward opportunity.