JPMorgan Reports Significant Drop in Miner’s Profitability Post Halving

• In Q2, the five Bitcoin miners that JPMorgan keeps tabs on mined 5,854 Bitcoin.
• Some miners are shifting their computational power from Bitcoin mining to AI projects.

A recent research from JPMorgan states that Bitcoin miners are finding it difficult to maintain profit due to the April halving of the Bitcoin network and increasing power prices.

According to a report written by analysts Reginald Smith and Charles Pearce, the Q2 of 2023 was a historic quarter for Bitcoin miners. They had to deal with the 4th Bitcoin halving event, which cut the daily BTC mining opportunity in half. Which resulted in lower margins and profitability.

In the halving event that occurred on April 20, the Bitcoin network cut mining payouts in half, from 6.25 BTC every 210,000 blocks to 3.125 BTC. Since then, Bitcoin miners have been struggling to catch up.

Shifting Computational Power to AI Projects

JPMorgan noted that cash-rich miners such as Riot Platforms and Cleanspark have been acquiring other miners with turn-key facilities in order to boost their power pipeline and raise their near-term hashrate. Miners with little cash, such as IREN and Cipher, prioritized acquiring greenfield possibilities because of the lower capital requirements.

In Q2, the five Bitcoin miners that JPMorgan keeps tabs on mined 5,854 Bitcoin, a decrease of 28% compared to the previous quarter. It was reported that Marathon Digital Holdings earned 2,056 BTC, maintaining its lead in the amount of Bitcoins mined.

In the meanwhile, CleanSpark increased its market share in Q2 thanks to $231 million in capital expenditures. It earned almost 27% of all covered miners’ Q2 revenues, according to the research.

According to the research, in order to meet the increasing needs of the sector, the five miners issued around $1.2 billion worth of stock. In the wake of the halving, some miners are shifting their computational power from Bitcoin mining to AI projects.

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