JPMorgan Chase: Bitcoin Mining Profitability at Historical Low

According to CoinDesk, JPMorgan Chase stated in a research report on Tuesday (3rd) that the profitability of Bitcoin (BTC) mining is at its lowest point in history. Analysts Reginald Smith and Charles Pearce wrote, "We estimate that Bitcoin miners earned an average daily block reward income of $43600 per EH/s in August, which is the lowest point on record

This is a huge difference compared to the peak in November 2021, when the Bitcoin price was $60000, the network computing power was 161 EH/s, and miners' daily income per EH/s was $342000.

Due to the third consecutive month of decline in Bitcoin prices and the increase in network computing power, mining stocks have also fallen. JPMorgan's report points out that the total market value of the 14 US listed mining companies it tracks has declined by 15% month on month to $20 billion, with only three mining companies performing better than Bitcoin during this period.

JPMorgan Chase pointed out that the network hash rate, which is an indicator of industry competition and mining difficulty, has risen for the second consecutive month. "The average network hash rate in August was 631 EH/s, an increase of 16 EH/s from the previous month and about 20 EH/s lower than the level before halving," while mining difficulty increased by 9% last month and 4% higher than before halving.

The report added that there was a brief surge in transaction fees in August, reaching up to 120% of the reward for memory blocks, which is a "positive factor" for miners. The investment bank also pointed out that the annualized volatility of Bitcoin increased from 45% in July to 62% in August.