Bitcoin Mining Profitability Dropped for Three Months in a Row

In its research report published today, JPMorgan (JPM) reported that daily mining revenue and gross profit have fallen for three months, although the average bitcoin (BTC) price and network hash rate increased in September.

The hash rate increased in all three months, reaching 643 exahashes per second (EH/s), up 2% compared to August. Hash rate refers to the total computing power used to perform transactions on a proof-of-work blockchain.

JPMorgan announced that miners earned an average of $42,100 per EH/s in daily block reward revenue last month, which was 6% less than the previous month.

Analysts Reginald Smith and Charles Pearce wrote, “We estimate daily block reward gross profit fell 6% month-over-month (m/m) in September to $16,100 per EH/s (38.4% gross margin), which is even lower than the last record.” “one level,” he said.

Analysts noted that transaction fees are low and do not exceed 5% of the block reward.

The total market value of 14 miners listed in the US increased by 4 percent to $21 billion. Hut 8 (HUT) performed very well last month, posting a gain of 21%. CleanSpark (CLSK) fell behind with a 13% decline.

The report stated that bitcoin’s annual volatility was 44 percent last month, a significant decrease from the 62 percent seen in August.