JPMorgan Notes a Rise in Bitcoin Mining Profitability During May

According to JPMorgan’s recent report, the combined market capitalization of 13 Bitcoin mining firms listed in the U.S. jumped nearly 20% in May. This surge aligned with a robust rally in Bitcoin prices and an uptick in mining profitability.

The Bitcoin network’s hashrate—the total computational power dedicated to mining and transaction validation on the proof-of-work blockchain—grew by approximately 25 exahashes per second (EH/s), averaging 897 EH/s throughout the month. A higher hashrate typically reflects increased miner competition and elevated network difficulty.

JPMorgan analysts Reginald Smith and Charles Pearce highlighted that mining profitability also improved significantly. They estimate miners generated daily block reward revenues of around $51,600 per EH/s, marking a 16% increase from April.

Furthermore, daily gross profits from block rewards rose 36% month-over-month to $27,900 per EH/s, signaling a sharp boost in miner earnings.

Among the tracked companies, IREN (IREN) led with a 37% market cap gain, while Bitfarms (BITF) lagged with an 8% decline. Overall, seven of the thirteen mining companies outpaced Bitcoin’s own price appreciation during May, according to the report.