The hashrate of the Bitcoin network, indicating mining competition, declined for the second straight month in December, as per a report by Wall Street giant JPMorgan (JPM) released on Monday.
According to analysts Reginald Smith and Charles Pearce, “The monthly average network hashrate, reflecting industry competition, dropped by 30 EH/s (-3%) m/m to an average of 1,045 EH/s in December.”
Hashrate measures the total computational power utilized to mine and process transactions on a proof-of-work blockchain, and is quantified in exahashes per second.
Even with reduced competition among miners, mining profitability saw a decrease. The analysts reported that miners achieved an average of $38,700 per EH/s in daily block reward revenue last month, which is “down 7% from November and 32% y/y, marking the lowest level ever recorded.” Daily block reward gross profit also fell by 9% to $17,100 per EH/s, according to the report.
While the bank did not elaborate on the reasons behind the declining mining profitability, a decrease in bitcoin prices since October likely contributed to the pressure on miners already affected by the latest halving and rising energy costs.
However, it’s not entirely bleak. The total market capitalization of the 14 U.S.-listed bitcoin miners and data center operators monitored by the bank increased to $48 billion by the end of 2025, showing a 73% rise for the year. Hut 8 (HUT) was the standout performer last month with a 2% gain, while CleanSpark (CLSK) lagged behind with a 33% decline.
Although only two companies surpassed bitcoin’s performance in December, nine of the 14 outperformed the largest cryptocurrency throughout the year, led by IREN (IREN) and Cipher Mining (CIFR), as noted in the report.
Read more: Bitcoin Mining Profitability Fell for Fourth Consecutive Month in November: JPMorgan
