JPMorgan: Bitcoin miners will face an even greater decline in profitability
According to a new report from JPMorgan analysts Reginald Smith and Charles Pearce, Bitcoin miners are facing some of the most challenging operating conditions in recent years.
Profitability in the sector has been declining for the fourth consecutive month. This is driven by increasing competition in the network, a drop in the price of the flagship cryptocurrency, and tighter financial conditions that are pressuring even the largest publicly traded mining companies.
JPMorgan reports that in November, daily gross profit from block rewards fell by another 26%. Bitcoin’s price also continued to decline throughout the month, while network competition limited revenues despite a slight 1% decrease in hashrate.
The hash price — the revenue miners earn per unit of computing power — has fallen below critical levels. At the end of November, it dropped below $35 per hash, putting several miners on the verge of breaking even. This has intensified stress in the industry and raised concerns about stability in 2026.
The combined market capitalization of fourteen U.S. publicly traded miners fell by 16% in November, down to $59 billion. JPMorgan also lowered its price target for Riot Platforms due to Bitcoin’s decline and equity dilution effects.
To reduce their dependence on Bitcoin mining, some companies are being forced to redirect resources toward artificial intelligence and high-performance computing.
See also: "Bitcoin mining difficulty continues to decline. How does this affect the market"
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