Bitcoin miners continue to face dwindling profits despite lower competition, JPMorgan says

The Bitcoin network hashrate, a metric measuring mining competition, declined for a second consecutive month in December, according to a report released by Wall Street giant JPMorgan (JPM) on Monday.

“The monthly average network hashrate, a proxy for industry competition, declined 30 EH/s (-3%) m/m to an average of 1,045 EH/s in December,” analysts Reginald Smith and Charles Pearce wrote.

The hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain, and is measured in exahashes per second.

Despite the lower competition for the miners, mining profitability also fell. The analysts estimated that miners earned an average of $38,700 per EH/s in daily block reward revenue last month, “down 7% from November and 32% y/y, representing the lowest level on record.” Daily block reward gross profit also declined last month, dropping 9% to $17,100 per EH/s, the report said.

While the bank didn’t go into detail about why mining profitability is falling, lower bitcoin prices since October have likely added to the margin squeeze for miners who are already feeling the pain from the most recent halving and higher energy prices.

Although it’s not all doom-and-gloom. The combined market cap of the 14 U.S.-listed bitcoin miners and data center operators that the bank tracks rose to $48 billion by the end of 2025, up 73% for the year. Hut 8 (HUT) was the best performer of the group last month with a 2% gain, while CleanSpark (CLSK) underperformed with a 33% decline.

While only two of the companies outperformed bitcoin in December, 9 of the 14 beat the largest cryptocurrency over the course of the year, led by IREN (IREN) and Cipher Mining (CIFR), the report added.

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