Bitcoin Network Hashrate Increases Slightly in Early May

Bitcoin’s network hashrate experienced a modest increase of 2% in the initial weeks of May, averaging 885 exahashes per second (EH/s), according to a recent research report from JPMorgan. This improvement in mining economics is attributed to a rise in Bitcoin prices alongside expanding gross margins.

Key Points:

• The hashrate, which signifies the total computational power for mining and transaction processing on a proof-of-work blockchain, serves as an indicator of industry competition and mining difficulty.
• Improved miner profitability in May was observed, paralleling gains in Bitcoin’s market price.
• The hashprice, a daily measure of mining profitability, rose by 13% month-over-month.
• Analysts Reginald Smith and Charles Pearce stated that miners netted approximately $50,100 in daily block rewards for each EH/s this month, marking a 13% increase from the previous month and a 3% year-on-year rise.

In conclusion, U.S. miners retain a substantial share of the network hashrate, currently accounting for about 30.5%. The total market capitalization of 13 tracked U.S.-listed Bitcoin mining stocks surged by 24%, equivalent to $4.6 billion, in May.