Bitcoin Mining Economics Weakened in February: JPMorgan

The combined market capitalization of 14 publicly traded U.S. miners overseen by Wall Street bank JPMorgan (JPM) fell 22% in February amid a decline in the price of Bitcoin (BTC) and pressure on the mining economy.

The bank noted that shares of high-performance computing (HPC) bitcoin miners fell after the announcement of DeepSeek's artificial intelligence (AI) launch, as well as concerns about short-term demand for data center capacity.

Last month saw a decline in revenue and profitability. The bank's experts calculated that Bitcoin miners earned an average of $54,300 per EH/s in daily block rewards in February, down 5% from the previous month.

“Gross daily block reward revenue decreased 9% month-on-month to $29,500 per EH/s in February,” analysts Reginald Smith and Charles Pierce report.

The report also indicated that the average network hashrate increased by 3% last month to 810 exahashes per second (EH/s).

Hashrate is the total computing power used to mine and process transactions on a proof-of-work blockchain.

According to the bank, mining difficulty has increased by 2% since January. The network difficulty is currently 28% higher than before the halving in April last year.

The report also found that Core Scientific (CORZ) was the top performer, down 9%, while Greenidge Generation was the worst performer, down 36% for the month.

Read more: US-based Bitcoin miners accounted for 29% of global hashrate in February: JPMorgan

Source: cryptonews.net