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JPMorgan Says Bitcoin Mining Profitability Continues To Decline

Published 2024-10-01, 05:59 a/m
© Reuters.  JPMorgan Says Bitcoin Mining Profitability Continues To Decline
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yolowire.com - U.S. bank JPMorganChase (NYSE: JPM) says that the profitability of mining Bitcoin (CRYPTO: BTC) continues to decline, falling for a third consecutive month in September.

In a new report, crypto analysts at JPMorgan (NYSE:JPM) say that Bitcoin mining revenues and gross profit decreased for a third straight month during September.

Bitcoin mining companies have been under pressure ever since the largest cryptocurrency by market capitalization underwent a halving event this April.

A halving event reduces the available supply of Bitcoin, and the rewards for mining it, by 50%. The latest halving has led to a wave of consolidation among Bitcoin miners in recent months.

In its report, JPMorgan says that Bitcoin miners earned an average of $42,100 U.S. in daily block rewards during September, down 6% from the previous month of August.

The JPMorgan analysts note that September marked “the lowest point on recent record” for Bitcoin mining profitability.

The report also highlights that Bitcoin mining has grown less profitable even as the price of BTC rose over the past month and volatility subsided.

In fact, by most measures, Bitcoin had its best performance ever for the month of September this year. Currently trading at $63,700 U.S., Bitcoin has gained 44% year to date.

JPMorgan concludes its report by highlighting the ongoing volatility in the share prices of publicly traded cryptocurrency mining firms.

While the share price of miner Hut8 (NASDAQ: HUT) rose 21% in September, fellow miner CleanSpark (NASDAQ: NASDAQ:CLSK) saw its stock decline as much as 13% during the month.

This content was originally published on yolowire.com

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