Bitcoin (BTC) miners experienced a surge in daily revenue and gross profit for the second month running in December, reaching levels not seen since April, according to a recent research report from JPMorgan (JPM).
As the price of the world’s largest cryptocurrency rallied, it continued to outpace network hashrate growth, resulting in improved mining profitability. JPMorgan estimated that last month, Bitcoin miners earned an average of $57,100 per exahash per second (EH/s) in daily block reward revenue, marking a 10% increase from November. However, analysts Reginald Smith and Charles Pearce pointed out that daily revenue and gross profit per EH/s still lagged behind pre-halving levels by 43% and 52%, respectively.
In December, the network hashrate saw a 6% increase, averaging 779 EH/s. This term refers to the total computational power combined to mine and process transactions on a proof-of-work blockchain. Alongside this growth, mining difficulty rose 7% from the previous month, standing 27% above levels prior to the reward halving event that occurred in April. The hashrate rose by an impressive 54% in 2024, a notable slowdown compared to the 103% spike noted in 2023.
Interestingly, the total market capitalization of the 14 publicly listed bitcoin miners monitored by JPMorgan dropped 23% to $28 billion in December, following a 52% rise in November. Among these miners, TeraWulf (WULF) was the standout performer, boasting a 136% gain last year while Bitcoin itself appreciated about 120%.
As the trends in Bitcoin mining profitability unfold, they hold promise and a sense of optimism in the cryptocurrency market. While perseverance is necessary given the remaining gaps compared to earlier profit levels, December has certainly provided a glimmer of hope for miners, pointing towards a potentially brighter horizon.
