Bitcoin Miners See Revenue and Profit Boost in December
According to a recent research report by JPMorgan, Bitcoin (BTC) miners experienced a significant increase in daily revenue and gross profit in December, marking the second consecutive month of growth. This surge in mining profitability can be attributed to the ongoing rally in the world’s largest cryptocurrency, which has outpaced network hashrate growth.
Mining Profitability on the Rise
JPMorgan estimates that Bitcoin miners earned an average of $57,100 per exahash per second (EH/s) in daily block reward revenue last month, representing a 10% increase from November. However, it’s worth noting that daily revenue and gross profit per EH/s remain 43% and 52% below pre-halving levels, respectively.
Network Hashrate and Mining Difficulty
The network hashrate grew by 6% in December, reaching an average of 779 EH/s. Hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain. Additionally, mining difficulty rose 7% from the previous month and is now 27% higher than before the reward halving event in April.
Yearly Performance and Market Cap
The total market cap of the 14 publicly listed Bitcoin miners tracked by JPMorgan declined 23% to $28 billion in December, following a 52% increase in November. Notably, TeraWulf (WULF) was the only miner to outperform Bitcoin last year, with a 136% gain, while Bitcoin itself climbed about 120%.
Conclusion
In conclusion, Bitcoin miners have seen a significant boost in revenue and profit in December, driven by the cryptocurrency’s ongoing rally. While mining profitability remains below pre-halving levels, the growth in network hashrate and mining difficulty suggests a continued upward trend. As the market continues to evolve, it will be interesting to see how miners adapt and respond to changing conditions.
Source: Coindesk.com
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