The Bitcoin network’s hashrate, a metric measuring mining competition, declined for the second consecutive month in December, according to a report released Monday by Wall Street giant JPMorgan (JPM).
“The network’s average monthly hashrate, an indicator of industry competition, declined by 30 EH/s (-3%) m/m to an average of 1,045 EH/s in December,” wrote analysts Reginald Smith and Charles Pearce.
Hashrate refers to the total combined computing power used to mine and process transactions on a proof-of-work blockchain, and is measured in exahashes per second.
Despite less competition for miners, mining profitability has also fallen. Analysts estimated that miners earned an average of $38,700 per EH/s in daily block reward revenue last month, “down 7% from November and 32% year-over-year, representing the lowest level on record.” Daily block reward gross margin also declined last month, falling 9% to $17,100 per EH/s, according to the report.
Although the bank did not explain in detail why mining profitability is declining, the drop in bitcoin prices since October has likely added to the margin squeeze for miners who are already feeling the pain of the latest halving and rising energy prices.
Even if everything is not pessimistic. The combined market capitalization of the 14 U.S.-listed bitcoin miners and data center operators that the bank tracks reached $48 billion at the end of 2025, up 73% year-on-year. Hut 8 (HUT) was the best performer of the group last month with a 2% gain, while CleanSpark (CLSK) underperformed with a 33% decline.
While only two of the companies outperformed bitcoin in December, 9 of the 14 beat the largest cryptocurrency during the year, led by IREN (IREN) and Cipher Mining (CIFR), the report added.
Learn more: Bitcoin mining profitability fell for fourth consecutive month in November: JPMorgan
