JPMorgan Reports Bitcoin Network Hashrate Dropped in June Amid Miner Adjustments to Heatwave

Bitcoin Hashrate Slips in June as U.S. Miners Cut Back Due to Heatwave, JPMorgan Reports

Bitcoin’s average monthly network hashrate fell by roughly 3% in June, according to a research report released Tuesday by JPMorgan (JPM).

The hashrate measures the total computational power securing Bitcoin’s proof-of-work network and processing transactions. It’s expressed in exahashes per second (EH/s) and serves as a gauge of mining difficulty and competition among miners.

“The decrease seems tied to seasonal weather-related reductions in mining activity in the U.S.,” analysts Reginald Smith and Charles Pearce noted. They pointed out that miners like Cipher, IREN, and Riot, which together run more than 80 EH/s in Texas, were affected by recent heatwave conditions.

Despite the dip in hashrate, bitcoin mining profitability improved. JPMorgan estimates that miners earned about $55,300 in daily block reward revenue per EH/s in June, reflecting a 7% increase compared to April.

Gross profits from daily block rewards rose by 13% month-over-month, reaching their highest level since January, the report added.

Meanwhile, the combined market capitalization of 13 publicly traded bitcoin mining companies in the U.S. tracked by JPMorgan grew by 23% in June, adding roughly $5.3 billion in value.

Mining companies with exposure to high-performance computing (HPC) outperformed pure-play bitcoin miners, boosted by speculation over a potential deal between Core Scientific (CORZ) and CoreWeave (CRWV).