In March, the total market capitalization of the 14 U.S.-listed bitcoin (BTC) miners tracked by JPMorgan (JPM) experienced a troubling 25% decrease, marking the third-worst monthly performance recorded in history. This decline raises questions about the sustainability and profitability of bitcoin mining in the current economic climate.
Among these miners, only one stock, Stronghold Digital Mining (SDIG), managed to outperform bitcoin last month. This stands in stark contrast to many of its counterparts, particularly those with high-performance computing (HPC) exposure, which consistently underperformed compared to pure-play miners for the second consecutive month.
According to analysts Reginald Smith and Charles Pearce, valuations at present are at their lowest levels relative to the block reward since the collapse of FTX in the fall of 2023. This statement highlights the ongoing challenges faced by the sector, as recent market conditions have placed significant pressure on bitcoin miners.
Despite the overall struggles in the mining sector, the average network hashrate did see a slight improvement, inching higher to 816 exahashes per second (EH/s) during March. The hashrate, which represents the total combined computational power used to mine and process transactions on a proof-of-work blockchain, serves as a key indicator of competition within the industry and the ongoing mining difficulty.
However, the adverse economic environment has affected mining revenue and profitability significantly. JPMorgan estimates that bitcoin miners earned an average of $47,300 per EH/s in daily block reward revenue in March, reflecting a 13% decrease from February. Additionally, daily block reward gross profit fell 22% month-on-month, landing at $23,000 per EH/s.
Stronghold Digital distinguished itself by only experiencing a 2% decline, whilst Cipher Mining (CIFR) faced a staggering 45% slump. This discrepancy in performance underscores the varying degrees of resilience among bitcoin miners amidst tough market conditions.
For further insights, read more in the [Bitcoin Network Hashrate Inched Higher in March as Mining Economics Weakened: JPMorgan](https://ift.tt/iY3dNWV).
