JPMorgan Reports Continued Decline in Bitcoin Mining Revenue Despite Rising Hashrate in September

Daily mining revenue and gross profit dropped for the third month in a row in September. This information comes from a recent report. The bank pointed out that the network hashrate went up by 2% since August.

The average price of bitcoin (BTC) and the network hashrate saw a slight increase in September. However, daily mining revenue and gross profit continued to decline. This trend was highlighted in a research report from JPMorgan (JPM) released on Tuesday.

The hashrate rose for the third consecutive month, hitting 643 exahashes per second (EH/s). To clarify, hashrate refers to the total computational power used to mine and process transactions on a proof-of-work blockchain.

JPMorgan estimated that miners earned about $42,100 per EH/s in daily block reward revenue last month. This figure represents a 6% decrease compared to the previous month.

Analysts Reginald Smith and Charles Pearce stated, “We estimate daily block reward gross profit fell 6% month on month to $16,100 per EH/s, which is a 38.4% gross margin. This marks the lowest point on recent record.”

Transaction fees remained low, accounting for less than 5% of the block reward, as noted by the authors.

The total market capitalization of the 14 U.S.-listed miners tracked by the bank increased by 4%, reaching $21 billion. Hut 8 (HUT) performed well with a 21% gain last month. In contrast, CleanSpark (CLSK) saw the largest decline at 13%.

Finally, Bitcoin's annualized volatility was reported at 44% last month, down from 62% in August. This shows a notable change in market stability.