Bitcoin Mining Revenue Surges in December, Reaching Post-Halving Highs
Bitcoin miners experienced a strong finish to the year as daily revenue and gross profit climbed for the second consecutive month in December, reaching their highest levels since April. A report by JPMorgan highlighted the sector's resilience amid a bullish cryptocurrency rally.
Increased Profitability Amid Slower Hashrate Growth
The report noted a surge in mining profitability, driven by Bitcoin's price gains outpacing the growth of the network hashrate. Miners earned an average of $57,100 per exahash per second (EH/s) in daily block rewards during December, a 10% increase compared to November.
Despite this growth, profitability metrics remain below pre-halving levels. Analysts Reginald Smith and Charles Pearce indicated that daily revenue and gross profit per EH/s are still 43% and 52% lower, respectively, than before April's halving event.
Network Dynamics: Hashrate and Difficulty
The Bitcoin network's computational power, or hashrate, grew 6% in December to an average of 779 EH/s, signaling continued infrastructure investment. However, mining difficulty also increased by 7%, adding to the challenges faced by miners. Since the halving, mining difficulty has risen by 27%.
In 2024, the network’s hashrate grew by 54%, a significant slowdown compared to the 103% growth seen in 2023.
Public Mining Companies: Mixed Performance
Publicly listed Bitcoin mining firms saw a 23% drop in their combined market cap, falling to $28 billion in December after a 52% surge in November. TeraWulf (WULF) emerged as a standout performer, gaining 136% in 2024 and outpacing Bitcoin’s 120% rise. This marked it as the only miner tracked by JPMorgan to outperform the cryptocurrency last year.
The Bigger Picture
As Bitcoin's price momentum continues, miners benefit from increased revenue despite operational challenges like rising difficulty and slower hashrate expansion. The data underscores the sector’s adaptability, even in the face of evolving market dynamics post-halving.
Bitcoin’s mining ecosystem remains a cornerstone of the cryptocurrency’s infrastructure, with December offering a glimpse into its resilience and potential for future growth.