In a dazzling display of resilience, Bitcoin miners are closing out 2024 with a bang as profitability soars for the second month in a row. The latest report from banking powerhouse JPMorgan unveils a crypto mining landscape that’s as dynamic as it is profitable, even in the face of slower network growth.
December’s Mining Boom: Revenue and Profits Skyrocket
Bitcoin’s relentless price rally in December proved to be a godsend for miners, easily outpacing the steady march of hashrate growth. According to JPMorgan’s estimates, miners raked in a jaw-dropping $57,100 per exahash per second (EH/s) in daily block rewards last month—a solid 10% climb from November’s already impressive figures.
But the real story lies in the profit margins. Gross mining profits also hit their highest levels since April, painting a picture of an industry that’s not just surviving, but thriving in the post-halving landscape. It’s a testament to the incredible adaptability and efficiency of today’s mining operations.
The Hashrate Equation: Steady Growth Amidst Soaring Profits
While profits are undeniably on the rise, network growth tells a more nuanced tale. December saw a modest 6% increase in hashrate, averaging out at 779 EH/s. It’s a far cry from the blistering 103% growth of 2023, but still nothing to scoff at.
Mining difficulty also climbed 7% last month, now standing 27% higher than pre-halving levels. It’s a stark reminder that the competition never sleeps in the world of Bitcoin mining. But rather than crumbling under the pressure, miners are rising to the challenge with a potent mix of innovation and sheer determination.
Daily revenue and gross profit per EH/s is still 43% and 52% below pre-halving levels, respectively.
– JPMorgan analysts Reginald Smith and Charles Pearce
The Mining Stock Rollercoaster: Winners and Losers
Of course, no analysis of the mining landscape would be complete without a look at the publicly traded giants. The total market cap of the 14 mining stocks tracked by JPMorgan took a 23% hit in December, sinking to $28 billion. It’s a sharp contrast to November’s 52% surge, underscoring the volatility that comes with the territory.
But even amidst the chaos, there are standouts. TeraWulf emerged as the undisputed champion of 2024, boasting a staggering 136% gain that left even Bitcoin’s 120% rise in the dust. It’s a powerful reminder that in the high-stakes game of crypto mining, fortune favors the bold.
The Road Ahead: Navigating the Mining Landscape
As we barrel into 2025, one thing is clear: the Bitcoin mining industry is as exhilarating as it is unpredictable. With profits soaring and competition fiercer than ever, miners will need to stay at the top of their game to thrive in this new era.
But if the past year has taught us anything, it’s that the mining community is more than up to the task. Armed with cutting-edge tech, unshakeable resolve, and a healthy dose of moxie, Bitcoin miners are poised to keep pushing the boundaries of what’s possible—and profitable—in the years to come.
So buckle up, hold on tight, and get ready for one wild ride. The future of Bitcoin mining is here, and it’s never looked brighter.