Bitcoin’s Mining Profitability Falls to All-time Low

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According to a report by JPMorgan on Friday, the recent increase in the Bitcoin network hashrate has caused a decline in the stock value of BTC mining companies that had recently gained from their investments in artificial intelligence (AI).

The hashrate refers to the overall computing power used to mine and validate transactions on a blockchain using proof-of-work algorithms.

The total market capitalization of the fourteen US-listed mining companies, which the bank closely monitors, has dropped by 18% since the end of July.

Currently, these companies trade at twice their proportional share of the four-year block reward.

However, there is some good news for the sector, as the US-listed mining companies have increased their share of the Bitcoin network hashrate to a record high of 26% in the last four months.

In the first two weeks of August, the network hashrate saw a 1% increase, reaching an average of 621 exahashes per second (EH/s), while it still remains 30 EH/s lower than the pre-halving levels.