JPMorgan Notes Enhanced Bitcoin Mining Profitability in December

Bitcoin (BTC) miners have seen improved profitability in December, as the hashprice—a metric tracking daily mining revenue—climbed 5% since November’s close, according to a Monday report by JPMorgan (JPM).

The hashprice benefited from Bitcoin’s price rally outpacing the growth of the network hashrate, which measures mining competition and difficulty. The global hashrate rose 6% month-to-date, averaging 773 exahashes per second (EH/s), the report stated.

“Miners generated approximately $57,300 in daily block rewards per EH/s during the first half of December,” analysts Reginald Smith and Charles Pearce noted. This represents a seven-month high, though still 40% below the levels observed before the last halving event.

JPMorgan also reported that the combined hashrate of 14 U.S.-listed mining companies it tracks has surged 94% this year, reaching 222 EH/s and accounting for nearly 29% of the total global network.

However, despite operational growth, the aggregate market capitalization of these miners fell by 4% this month, equating to a $1.5 billion loss, following a more than 50% increase after the U.S. presidential election results.

The report concluded that U.S.-listed miners are currently valued at twice their proportional share of the four-year block reward potential, reflecting optimistic investor sentiment amid expectations for continued industry expansion.