Key Information:
- March Market Cap Drop: U.S. bitcoin miners tracked by JPMorgan fell by 25%, approximately $6 billion.
- Historic Performance: This is noted as the third-worst monthly performance on record for these miners.
- Revenue Decline: Daily mining earnings and profitability showed a downward trend.
Only one miner, Stronghold Digital Mining, managed to surpass Bitcoin’s performance last month. Notably, miners engaged with high-performance computing fell short compared to other dedicated miners for the second consecutive month.
“We note valuations today are at the lowest levels relative to the block reward since the collapse of FTX in Fall 2023,” analysts Reginald Smith and Charles Pearce commented.
The average network hashrate recorded an increase, reaching 816 EH/s within the month, indicating ongoing competition among miners. Mining income and profitability have decreased further.
“Estimates indicate that bitcoin miners received an average of $47,300 per EH/s in daily block reward revenues in March, a decrease of 13% from February,” JPMorgan’s report stated. Their gross profits declined by 22% month-over-month, amounting to $23,000 per EH/s.
Stronghold Digital Mining emerged with a minor decline of 2% while Cipher Mining reported a significant 45% drop.
