According to CoinDesk: Bitcoin mining profitability reached unprecedented lows in August, as the network hashrate continued to rise, according to a recent report from JPMorgan analysts. The report highlights that U.S.-listed miners now account for 26% of the Bitcoin network's hashrate, the highest level ever recorded.
The network hashrate, which measures the total computational power used to mine and process transactions on the Bitcoin blockchain, increased by approximately 1% in the first two weeks of August, reaching an average of 621 exahashes per second (EH/s). Despite this increase, the current hashrate remains 30 EH/s below pre-halving levels.
JPMorgan analysts Reginald Smith and Charles Pearce noted that the rise in hashrate, combined with a 5% drop in Bitcoin's price since the halving, has significantly impacted mining profitability. The hashprice, a key metric of mining profitability, is now about 30% lower than December 2022 levels and 40% below pre-halving figures.
Despite the challenges, U.S.-listed miners have seen their share of the global Bitcoin hashrate grow for the fourth consecutive month, now capturing a record 26% of the network's total. However, the total market capitalization of the 14 U.S.-listed mining companies tracked by JPMorgan has dropped by 18% since the end of July, reflecting the pressures on the industry.
The report suggests that these developments could slow the growth of the network's hashrate in the near term, as miners grapple with reduced profitability and ongoing market volatility. Nonetheless, Bitcoin remains up 35% year-to-date and 104% year-on-year, offering some positive outlook for the sector.
