According to CoinDesk, Bitcoin mining profitability has reached a record low, as reported by JPMorgan in a recent research report. The aggregate market capitalization of U.S.-listed Bitcoin miners tracked by the bank fell by 15% last month. The report highlighted that mining difficulty increased by 9% from the previous month.
JPMorgan analysts Reginald Smith and Charles Pearce noted that Bitcoin miners earned an average of $43,600 per exahash per second (EH/s) in daily block reward revenue in August, marking the lowest point on record. This is a significant drop from the peak value of $342,000 in November 2021, when Bitcoin's price was $60,000 and the network hash rate was 161 EH/s.
The decline in mining stocks was attributed to the falling average price of Bitcoin for the third consecutive month and the rising network hash rate. The total market cap of the 14 U.S.-listed miners tracked by JPMorgan shrank to $20 billion, with only three miners outperforming Bitcoin during this period. The network hash rate, which serves as a proxy for competition and mining difficulty, averaged 631 EH/s in August, up 16 EH/s from the previous month and about 20 EH/s below pre-halving levels.
JPMorgan also noted that mining difficulty rose by 9% last month and is now 4% higher than before the halving. There was a brief spike in transaction fees in August, reaching as much as 120% of the block reward, which provided an incremental positive for miners. Additionally, Bitcoin's annualized volatility increased to 62% in August, up from 45% in July.
