US-Listed Bitcoin Miners Lose 25% of Their Market Cap in March: JPMorgan

The combined market capitalization of 14 bitcoin (BTC) mining companies listed on U.S. exchanges and tracked by JPMorgan (JPM) fell 25% in March, marking its third-worst monthly performance ever, the Wall Street bank reported on Tuesday.

The report found that only one stock, Stronghold Digital Mining (SDIG), outperformed Bitcoin (BTC) last month. For the second month in a row, high-performance computing (HPC) miners have underperformed pure-play miners.

“We note that current valuations are at their lowest relative to block rewards since the FTX crash in the fall of 2023,” analysts Reginald Smith and Charles Pierce wrote.

The network's average hashrate increased slightly over the month to 816 exahashes per second (EH/s), the report said. Hashrate represents the total computing power used to mine and process transactions on a proof-of-work blockchain, and serves as an indicator of the industry's competitive environment and mining difficulty.

Mining industry revenues and profitability have declined.

“We estimate that Bitcoin miners earned an average of $47,300 per EH/s in daily block reward revenue in March, down 13% from February,” the bank said. Gross daily block reward revenue fell 22% month-on-month to $23,000 per EH/s.

Stronghold Digital outperformed the sector last month, posting a 2% decline. Cipher Mining (CIFR) was the worst performer, falling 45%.

Read more: Bitcoin network hashrate increases slightly in March as mining economy weakens: JPMorgan

Source: cryptonews.net