In the ever-evolving world of cryptocurrency, December brought renewed optimism for Bitcoin (BTC) miners, with their daily revenue and gross profit experiencing a significant uptick, reaching the highest levels since April, according to a research report released by JPMorgan (JPM) on Monday.
The positive shift in mining profitability can be attributed to the rally of the world’s largest cryptocurrency, which has consistently outpaced the growth of the network hashrate. Analysts at JPMorgan estimate that Bitcoin miners earned an impressive average of $57,100 per exahash per second (EH/s) in daily block reward revenue for the month of December, marking a 10% increase from November’s figures.
However, it is essential to contextualize this growth. Despite the recent gains, the daily revenue and gross profit per EH/s remain considerably lower than pre-halving levels, with drops of 43% and 52%, respectively, as highlighted by analysts Reginald Smith and Charles Pearce.
The network hashrate itself saw a 6% increase in December, climbing to an average of 779 EH/s. This figure represents the total combined computational power dedicated to mining and processing transactions on the proof-of-work blockchain. Additionally, the month experienced a 7% rise in mining difficulty, now sitting at 27% higher than prior to the reward halving event that occurred in April. Notably, the hashrate’s growth in 2024—54%—is slower compared to the staggering 103% increase observed in 2023.
Despite these improvements in mining conditions, the total market capitalization of the 14 publicly listed Bitcoin miners tracked by JPMorgan saw a 23% decline in December, bringing it down to $28 billion. This follows a noteworthy 52% rise in November, indicating that market volatility continues to influence miner valuations.
Interestingly, while most miners faced challenges, TeraWulf (WULF) stood out as a noteworthy performer, outpacing Bitcoin’s gains with a remarkable 136% increase last year, whilst Bitcoin itself rose approximately 120%.
As we look towards the future, the financial landscape of Bitcoin mining remains complex and interlinked with broader market developments. For further insights, you can read more on this topic from our previous coverage: Bitcoin Miners Are Expected to be Profitable in December, Jefferies Says.
