Financial giant JPMorgan Chase said that although the average price of Bitcoin and the computing power of the entire network increased in September, the profitability of the overall mining industry continued to shrink, with daily mining revenue and gross profit declining for three consecutive months.
JPMorgan Chase mentioned in a research report released on Tuesday that the Bitcoin network's computing power reached 643 Exahash (EH/s) in September, an increase of 2% from August and an upward trend for the third consecutive month.
Analysts Reginald Smith and Charles Pearce said: “According to our estimates, daily block reward gross profit in September fell 6% from August to $16,100 per EH/s (gross profit margin was 38.4%), hitting a recent record The lowest point.
The report also noted that Bitcoin transaction fees continued to be sluggish in September and did not exceed 5% of the block reward.
In September this year, the total market value of 14 U.S.-listed mining companies tracked by JPMorgan Chase increased by 4%, reaching $21 billion. Among them, Hut 8 (HUT) performed best, with a market value increase of 21%; while CleanSpark (CLSK) It performed the worst, with its market value shrinking by 13%.
The report noted that Bitcoin’s annualized volatility was 44% in September, down from 62% in August.
Since the “halving” of block rewards in April this year, as mining output and revenue opportunities have plummeted, the profit margins of many miners have been significantly reduced. Christopher Bendiksen, director of Bitcoin research at CoinShares, once said:
After the halving event, the difficulty of Bitcoin mining has repeatedly reached new highs, making the prospects for many miners extremely grim, especially those with higher costs.
Christopher Bendiksen pointed out that if this trend continues, "there will be some miners who will struggle to maintain a balanced cash flow, let alone a profit."
〈JP Morgan Report: Bitcoin Mining Profitability Declines for “3rd Consecutive Month”〉 This article was first published on "Blocker".
