Bitcoin Mining Profits Surge Amid BTC Rally

Bitcoin mining economics improved significantly in early November, according to a Monday report from JPMorgan. The hashprice, a key measure of mining profitability, rose by 29% since the end of October, as Bitcoin’s price rally outpaced growth in network hashrate and transaction fees climbed as a percentage of block rewards.

Mining Stocks See a Boost

The report, authored by analysts Reginald Smith and Charles Pearce, noted that the total market capitalization of mining stocks tracked by the bank surged by 33%, or about $8 billion, between Oct. 31 and Nov. 15. This growth was attributed to Bitcoin’s gains and broader optimism in the crypto market following Donald Trump’s victory in the U.S. presidential election.

Bitcoin, the world’s largest cryptocurrency, has climbed 30% this month, reaching all-time highs above $93,000.

Network Hashrate and Mining Landscape

The Bitcoin network hashrate, which measures the total computational power dedicated to mining, rose 2% month-to-date, averaging 718 exahashes per second (EH/s). A rising hashrate indicates increasing competition among miners and reflects the growing difficulty of mining Bitcoin.

JPMorgan’s report highlights that 14 U.S.-listed mining companies now control about 28% of the global network’s hashrate. This share remains at record highs, underscoring the dominance of U.S. miners in the global Bitcoin mining ecosystem.

Outlook for Miners

The recent rise in hashprice signals better profitability for miners, who benefit from higher BTC prices and increased transaction fees. However, rising hashrate competition could lead to increased difficulty, potentially squeezing profit margins in the long term.

The report highlights that Bitcoin miners are poised to capitalize on the bullish market momentum, supported by both institutional interest and optimism around the regulatory landscape following the U.S. elections.