Bitcoin Mining Profitability Improved in November, JPMorgan Says

Bitcoin (<a href="https://www.coindesk.com/price/bitcoin/ " target="_blank">BTC</a>) daily mining revenue and gross profit rose in November as the world's largest cryptocurrency hit record highs, but it is still about 50% below <a href="https://www.coindesk.com/tech/2024/04/20/bitcoin-blockchain-has-fourth-halving-in-15-year-history-in-show-of-monetary-policy-set-by-code" target="_blank">pre-halving</a> levels, JPMorgan (JPM) said in a research report Monday.

"We estimate that bitcoin miners earned an average of $52,000 per EH/s in daily block reward revenue in November, up 24% from October," analysts Reginald Smith and Charles Pearce wrote.

The bank noted that transaction fees on the network spiked following the U.S. Nov. 5 presidential election and this provided some "hashprice relief." The hashprice is a measure of mining profitability.

The total market cap of the 14 publicly listed bitcoin miners in the bank's coverage surged 52% in November to $36.2 billion, the report said.

The average network hashrate rose 4% month-on-month to 731 exahash per second (EH/s), the bank noted, while mining difficulty increased 7% from October.

Hashrate refers to the total combined computational power used to mine and process transactions on a <a href="https://www.coindesk.com/learn/2020/12/16/what-is-proof-of-work/ " target="_blank">proof-of-work</a> blockchain and is a proxy for competition in the industry and mining difficulty.

Bitcoin's annualized volatility rose to 62% in November, up from 42% the month before, the report added.

Read more: <a href="https://www.coindesk.com/markets/2024/11/01/bitcoin-mining-revenue-profit-fell-in-october-for-a-fourth-consecutive-month-jpmorgan" target="_blank">Bitcoin Mining Revenue, Profit Fell in October for a Fourth Consecutive Month: JPMorgan</a>