Bitcoin Network Hashrate Rose Slightly in First Two Weeks of May: JPMorgan
Bitcoin’s network hashrate experienced a 2% increase during the first half of May, reaching an average of 885 exahashes per second (EH/s), according to a recent JPMorgan research report. This upward trend signifies heightened competition within the Bitcoin mining industry and a corresponding increase in mining difficulty. The report highlights a positive correlation between the rising Bitcoin price and improved miner profitability throughout May.
The hashprice, a key indicator of daily mining profitability, saw a substantial 13% surge from April, a development JPMorgan analysts describe as “encouraging.” Their calculations estimate that miners generated approximately $50,100 in daily block reward revenue per EH/s during the first two weeks of May. This represents a 13% month-over-month increase and a more modest 3% year-over-year growth.
The report further analyzes the performance of publicly traded U.S. Bitcoin miners. These companies collectively maintained their share of the network hashrate, accounting for approximately 30.5% – a 1.1% increase compared to April. This sector experienced significant growth in market capitalization, with a collective rise of 24%, or $4.6 billion, during May. Individual company performance varied, however. Bitdeer (BTDR) led the pack with a remarkable 43% gain, while Greenidge (GREE) underperformed, showing a 5% decline.
JPMorgan’s analysis also notes a trend of underperformance by Bitcoin miners with high-performance computing (HPC) exposure. This marks the third consecutive month of underperformance relative to the Bitcoin price itself. The report does not delve into the specific reasons for this disparity, however it suggests that factors beyond simple Bitcoin price fluctuations are impacting the profitability of this subgroup of miners. The overall positive trend in hashrate, hashprice, and miner revenue signifies a robust and competitive Bitcoin mining landscape in the early part of May. The report encourages further analysis of the underlying factors driving the performance discrepancies observed across different mining companies.
