Bitcoin Mining Profitability Hits Record Low as JPMorgan Warns of 32% Revenue Slump
Bitcoin mining profitability has hit an all-time low in early 2026. JPMorgan reports a 32% YoY drop in reward revenue despite a decrease in network hashrate.
It's a tough time to be a Bitcoin miner. Even though competition on the network is easing up, profits are disappearing. A fresh report from JPMorgan reveals that mining revenue has plummeted to record lows, dropping 32% year-on-year.
Analyzing the Bitcoin Mining Profitability Crisis
In a report released on January 5, 2026, JPMorgan analysts noted that the Bitcoin network hashrate—the total computing power used for mining—fell for the second month in a row in December. The monthly average hashrate dipped by 30 EH/s to 1,045 EH/s. Usually, less competition means better days for those still mining, but that hasn't been the case lately.
Miners earned an average of just $38,700 per EH/s in daily reward revenue last month. That's down 7% from November and represents the lowest level ever recorded. Gross profits weren't any better, sliding 9% to $17,100 per EH/s. The squeeze likely stems from the lingering effects of the last halving, higher electricity bills, and Bitcoin's price struggle since October.
The 2025 Paradox: Mining Stocks Surge Amidst Low Profits
Here's the strange part: while individual mining profits were abysmal, the companies behind them had a stellar 2025. The total market cap of 14 major U.S.-listed mining firms surged 73% over the year, reaching $48 billion.
- Hut 8 (HUT)
- gained
- 2%
- in December, bucking the trend.
- CleanSpark (CLSK)
- struggled with a
- 33%
- decline in the same month.
- IREN
- and
- Cipher Mining
- led the pack throughout
- 2025
- , outperforming
- Bitcoin
- itself.
This content is AI-generated based on source articles. While we strive for accuracy, errors may occur. We recommend verifying with the original source.
Related Articles
Bitcoin reclaimed $75,000 on Iran-Pakistan ceasefire optimism, but it's lagging an 11-day global equity rally. Record miner selling, 46 days of negative funding rates, and a Wednesday deadline tell the real story.
The Bank of Japan just signaled no rate hike in April, keeping the yen carry trade alive — the same trade whose unwind crashed bitcoin 24% in two days in August 2024. Here's what that means for crypto markets now.
SpaceX swung from $8B profit to a $5B loss in 2025, yet kept its 8,285 BTC position untouched. With an IPO looming, what does that signal about corporate treasury strategy?
A US-Iran ceasefire sent Bitcoin to $72,750, QQQ futures up 3.3%, and gold past $4,800 — while oil cratered 12.5%. Here's what the market's reaction actually tells us.
Bitcoin reclaimed $75,000 on Iran-Pakistan ceasefire optimism, but it's lagging an 11-day global equity rally. Record miner selling, 46 days of negative funding rates, and a Wednesday deadline tell the real story.
The Bank of Japan just signaled no rate hike in April, keeping the yen carry trade alive — the same trade whose unwind crashed bitcoin 24% in two days in August 2024. Here's what that means for crypto markets now.
SpaceX swung from $8B profit to a $5B loss in 2025, yet kept its 8,285 BTC position untouched. With an IPO looming, what does that signal about corporate treasury strategy?
A US-Iran ceasefire sent Bitcoin to $72,750, QQQ futures up 3.3%, and gold past $4,800 — while oil cratered 12.5%. Here's what the market's reaction actually tells us.
Thoughts
Share your thoughts on this article
Sign in to join the conversation