During the first two weeks of November 2024, the profitability of Bitcoin (BTC) mining increased, supported by a 29% increase in hashpriceor hash price, according to JPMorgan.
This metric, a key indicator of Bitcoin mining profitability, reflects the amount of revenue a miner can generate per unit of hashrate (computing power) in a day, and is generally expressed in dollars per terahash per second per day ($/TH/s/day).
Currently, according to data from Brainshe hashprice of Bitcoin, which has been growing since the beginning of November, is at 0.059 dollars for each unit of terahash.
The hashprice increased in line with the rise of bitcoin, after Trump’s victory
In the following image, also extracted from Braiins, you can see that the last lowest point dates from November 5, 2024, when the hashprice It was $0.043.
That day Donald Trump defeated Kamala Harris in the US presidential elections and, given that part of his campaign was in favor of Bitcoin and the cryptocurrency ecosystem, The prices of most crypto assets skyrocketed.
In this way, the increase in hashprice is due, in part, to the bitcoin price experienced a significant rallyreaching historical highs. At the time of writing this article, it is trading in the $92,000 area, almost 30% more than the price in the days before the US elections.
He hashprice contemplates the income of the miners both from the fixed subsidy of the block (3,125 after the halving April 2024) and the commissions paid by users to process transactions on the network.
So, if the price of bitcoin rises, the miners’ income rises.
Hashrate growth slowdown
Additionally, the report of JPMorgan, detected that the growth of hashrate (total network computing power) increased by 2% during November. Furthermore, during the first half of November the hashrate averaged 718 EH/s (exahashes per second).
However, this growth was slower compared to the rise in BTC price, reducing competitive pressure on mining.
Turning once again to the Braiins charts, it can be seen that the price of bitcoin (blue line) exceeded the hashrate (orange line) around November 11 and stays above of this measure at present. That is, the price has grown faster than the hashrate. This allowed the miners’ profits to increase.
He hashrate refers to the combined computing power used to mine and process transactions on the Bitcoin network, making it an essential indicator of mining competition and difficulty.
The increase of hashrate It generally indicates greater investment in equipment and expansion by miners, although it also increases the difficulty of mining.
Bitcoin mining companies saw their shares rise
Ultimately, the report notes that the market capitalization of mining stocks monitored by JPMorgan increased by 33%which represents approximately 8 billion dollars, in the period from October 31 to November 15.
Although the statement did not specify which companies were analyzed, it is possible to highlight that, coinciding with the dates established by JPMorgan, one of the most important Bitcoin mining companies in the world, TeraWulf (WULF), sustained an increase in its shares from $5.98 to $8.82.
The same happened with the largest market capitalization BTC mining company, MARA Holdings (MARA), whose shares in that period grew from $15.50 to $25.23.
However, today, November 19, 2024, the price of those shares fell. While WULF is trading at $7.50, MARA fell to the $20.31 area.
Finally, according to the report, 14 US-listed miners represent approximately 28% of the hashrate global. This percentage, which remains at all-time highs, indicates continued growth in the influence of these companies in the Bitcoin network.
In summary, given the notable increase in the price of BTC, the miners of this crypto asset receive relief, after a difficult 2024 in terms of profitability.
Recently, CriptoNoticias had reported that, from July to October, the profitability of miners decreased constantly. Thus, as long as the price remains rising and close to or above the maximum production costs of Bitcoin, miners will have better income as a reward for their work.
