Bitcoin (BTC) mining profitability has hit record lows, according to a research report by JPMorgan. The bank estimates that miners earned an average of $43,600 per exahash a second in daily block reward revenue in August, the lowest point on record. This compares to a peak of $342,000 in November 2021 when the BTC price was $60,000 and the network hashrate was 161 EH/s.
The declining mining profitability has led to a 15% month-on-month drop in the total market cap of the 14 U.S.-listed miners tracked by the bank, which now stands at $20 billion. Only three of these miners outperformed Bitcoin during the period. The network hashrate, a proxy for competition in the industry and mining difficulty, increased for the second straight month, averaging 631 EH/s in August.
JPMorgan noted that mining difficulty rose 9% last month and is 4% higher than before the halving. There was a brief spike in transaction fees in August, to as much as 120% of the block reward, which is an "incremental positive" for the miners, the report added.
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