The Bitcoin community hashrate, a metric measuring mining competitors, declined for a second consecutive month in December, in keeping with a report launched by Wall Avenue big JPMorgan (JPM) on Monday.
“The month-to-month common community hashrate, a proxy for trade competitors, declined 30 EH/s (-3%) m/m to a median of 1,045 EH/s in December,” analysts Reginald Smith and Charles Pearce wrote.
The hashrate refers back to the whole mixed computational energy used to mine and course of transactions on a proof-of-work blockchain, and is measured in exahashes per second.
Regardless of the decrease competitors for the miners, mining profitability additionally fell. The analysts estimated that miners earned a median of $38,700 per EH/s in day by day block reward income final month, “down 7% from November and 32% y/y, representing the bottom stage on report.” Each day block reward gross revenue additionally declined final month, dropping 9% to $17,100 per EH/s, the report mentioned.
Whereas the financial institution did not go into element about why mining profitability is falling, decrease bitcoin costs since October have probably added to the margin squeeze for miners who’re already feeling the ache from the newest halving and better power costs.
Though it is not all doom-and-gloom. The mixed market cap of the 14 U.S.-listed bitcoin miners and information heart operators that the financial institution tracks rose to $48 billion by the top of 2025, up 73% for the 12 months. Hut 8 (HUT) was the perfect performer of the group final month with a 2% acquire, whereas CleanSpark (CLSK) underperformed with a 33% decline.
Whereas solely two of the businesses outperformed bitcoin in December, 9 of the 14 beat the biggest cryptocurrency over the course of the 12 months, led by IREN (IREN) and Cipher Mining (CIFR), the report added.
Learn extra: Bitcoin Mining Profitability Fell for Fourth Consecutive Month in November: JPMorgan
