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Bitcoin Mining Profitability Declines for Fourth Month, Says JPMorgan

Bitcoin Mining Profitability Declines for Fourth Month, Says JPMorgan

Bitcoin miners face record-low revenue of about $35 per PH/s, with payback periods exceeding 1,000 days and halving set to reduce rewards further in roughly 850 days.

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Fact Check
The assessment is based on strong, consistent, and direct evidence from multiple credible sources. A primary news article from CoinDesk, a highly authoritative source in the cryptocurrency space, explicitly reports that JPMorgan stated Bitcoin mining profitability fell for a fourth consecutive month. This reporting is directly corroborated by another major financial news platform, Yahoo Finance, which also covers the JPMorgan report. The claim is further echoed by syndicated news on Moomoo and a summary on Whale Alert, demonstrating that the information is widely disseminated and consistently attributed to JPMorgan. There is no conflicting evidence among the provided sources; the irrelevant articles discuss other JPMorgan-related crypto topics but do not contradict the statement about mining profitability. The high authority and perfect relevance of the primary sources, combined with consistent secondary reporting, provide a high degree of confidence that the statement is true.
Summary

Bitcoin miners are experiencing historically low profitability as November’s price drop reduced revenue from about $55 per PH/s to $35 per PH/s, below the $44 per PH/s average operating cost. The network hash rate is near 1.1 ZH/s, and even the latest mining rigs now have payback periods exceeding 1,000 days—well beyond the approximately 850 days until the next Bitcoin halving. Public miner stocks, including Marathon Digital Holdings, CleanSpark, Riot Platforms, and HIVE, have seen declines of 32% to 54% since mid-October. This downturn follows JPMorgan's data showing a 26% drop in daily block reward profits and a 16% decrease in the combined market capitalization of tracked U.S.-listed miners.

Terms & Concepts
  • Hashrate: Total computational power used to mine and process transactions on a proof-of-work blockchain, indicating competition and mining difficulty.
  • Daily Block Reward: The total cryptocurrency miners earn each day from creating new blocks, excluding transaction fees.
  • Proof-of-Work: A blockchain consensus mechanism where miners solve complex mathematical problems to validate transactions and add new blocks.