The 14 U.S.-listed mining companies tracked by JPMorgan saw their combined market capitalization fall 16% month-over-month to $59 billion.
Bitcoin News
Bitcoin mining profitability fell throughout November, marking the fourth consecutive monthly decline, according to JPMorgan analysis. Daily block reward gross profit decreased 26% compared to October, while the network hashrate averaged 1,074 exahashes per second after dropping 1% from the previous month.
Analysts Reginald Smith and Charles Pearce reported miners earned an average of $41,400 per exahash per second in daily BlockReward revenue during November. This represents a 14% decline from October and a 20% decrease year-over-year.
The November hashrate decline followed record highs achieved in October. Hashrate measures total computational power securing proof-of-work blockchains and serves as an indicator of industry competition and mining difficulty levels.
The 14 U.S.-listed mining companies tracked by JPMorgan saw their combined market capitalization fall 16% month-over-month to $59 billion. Cipher Mining posted the strongest performance among the group with a 9% gain, attributed to its recent Fluidstack agreement.
Bitdeer recorded the weakest performance, declining 40% during November. The Monday report noted varied company results despite broadly declining profitability across the Bitcoin mining sector.
Mining revenue has faced sustained pressure following April's halving event, which reduced block rewards from 6.25 Bitcoin to 3.125 Bitcoin. This cut miner income in half while operational expenses including energy costs remained largely stable.
Multiple mining operators have pursued revenue diversification strategies in response to margin compression. Some firms have expanded into artificial intelligence infrastructure and high-performance computing services to supplement traditional crypto mining operations.
Electricity costs continue to determine mining profitability, driving operators to seek jurisdictions with low power rates and supportive regulatory frameworks. The hashrate reduction suggests certain miners may have temporarily shut down equipment as profit margins narrowed.
Bitcoin network difficulty adjusts approximately every two weeks based on total computational power. The recent hashrate decline could trigger downward difficulty adjustments, potentially improving economics for miners who maintain operations through the current period.
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