In June, the Bitcoin network observed a decrease of approximately 3% in its average monthly hashrate, according to a report from Wall Street bank JPMorgan. The report attributed this decline to miners scaling back their operations due to seasonal weather conditions.
Key Points:
- The Bitcoin network’s average hashrate declined by about 3% last month, influenced predominantly by heat-related curtailment of mining activities.
- JPMorgan analysts noted a stronger performance from operators engaged in high-performance computing (HPC), in comparison to traditional miners, amidst talks regarding a potential acquisition involving Core Scientific and CoreWeave.
“Our sense is the decline was driven by seasonal weather-related curtailment in the U.S., and note that Cipher, IREN, and Riot alone operate over 80 EH/s in Texas,” noted the analysts.
Bitcoin mining profitability is improving, with analysts estimating average earnings of $55,300 per EH/s in daily block rewards for the month of June, which reflects a 7% rise since April. Moreover, the gross profits from daily block rewards surged by 13% compared to the previous month, reaching levels not seen since January.
As reported, the overall market cap of 13 publicly traded bitcoin mining firms tracked by JPMorgan increased by 23%, equivalent to around $5.3 billion compared to the previous month.
In light of these findings, operators with HPC exposure have notably outperformed specialty miners, with IREN demonstrating a 67% gain, while Bitfarms saw a decrease of 19%.
