Bitcoin Miners Experience Surge in Revenue Thanks to Rising Prices: JPMorgan Analysis

Bitcoin Miners See Growth in Revenue and Profitability

According to a recent report by CoinDesk, Bitcoin miners have recorded significant increases in daily revenue and gross profit for the second consecutive month in December 2023. This surge has brought profitability levels to their highest since April.

Factors Contributing to Increased Profitability

The ongoing rally of Bitcoin has been a key driver behind this increase, as it has outperformed the growth in network hashrate, as discussed in a research report by JPMorgan.

Revenue Statistics

The report estimates that Bitcoin miners earned an average of $57,100 per exahash per second (EH/s) in daily block reward revenue in December, showing a 10% increase from November. However, it is essential to note that daily revenue and gross profit per EH/s still remain 43% and 52% below pre-halving levels, respectively, according to analysts Reginald Smith and Charles Pearce.

Impact of Network Hashrate and Mining Difficulty

In December, the network hashrate, which represents the total computational power dedicated to mining and processing transactions on a proof-of-work blockchain, saw a 6% increase to an average of 779 EH/s. Furthermore, mining difficulty climbed by 7% from the previous month, now sitting at 27% higher than levels recorded before the reward halving event in April.

Hashrate Growth Trends

Interestingly, while Bitcoin's hashrate grew 54% in 2024, this represents a slower pace compared to the 103% increase observed in 2023. This trend indicates the complex dynamics influencing the Bitcoin mining landscape.

Conclusion

The growth in profitability for Bitcoin miners in December is a positive sign amid a fluctuating market. However, the challenges posed by increased mining difficulty and competition still linger as the sector adapts to ongoing changes.