Bitcoin Mining Profits Drop to All-Time Low in August

Bitcoin (BTC) mining stocks reversed artificial intelligence (AI)-related gains in the first two weeks of August as network hash rates rose, pushing mining profitability lower, JPMorgan (JPM) wrote in a research report on Friday.

Analysts Reginald Smith and Charles Pearce explained that the combined market value of fourteen US-listed miners has fallen by 18% since the end of July.

Of course, the report does not only include negative news for the sector. It is stated that the share of US-listed miners in the Bitcoin network hash rate increased for the fourth month in a row, reaching a new record level of 26 percent.

The network hash rate is up 1 percent in the first two weeks of the month, rising by about five exahashes per second (EH/s), to an average of 621 EH/s, which is 30 EH/s below levels seen before the halving.

The report highlights that the hash price, which measures mining profitability, is approximately 30 percent below the levels seen in December 2022.

The bank says the bitcoin price has fallen by about 5% since the halving, but is up 35% since the beginning of the year and 104% on an annual basis.