JPMorgan: U.S.-Listed Bitcoin Miners Lost 25% of Market Cap in March

Key Points to Know:

• Bitcoin miners listed in the U.S. that JPMorgan tracks lost 25% of their market cap in March, amounting to about $6 billion.

• The bank noted that this was the third-worst monthly performance on record for publicly traded Bitcoin miners.

• Both daily mining revenue and profitability declined during the month, according to the report.

JPMorgan reported that the combined market cap of the 14 U.S.-listed Bitcoin (BTC) miners it tracks dropped by 25% in March, marking the third-worst monthly performance on record.  

According to the report, only one stock, Stronghold Digital Mining (SDIG), outperformed Bitcoin (BTC) during the month. Additionally, miners with high-performance computing (HPC) exposure continued to underperform compared to pure-play miners for the second consecutive month.

Analysts Reginald Smith and Charles Pearce noted, "Valuations today are at their lowest levels relative to the block reward since the collapse of FTX in the fall of 2023."  

The report also mentioned that the average network hashrate slightly increased in March, reaching 816 exahashes per second (EH/s). The hashrate represents the total computational power used for mining and processing transactions on a proof-of-work blockchain, serving as an indicator of industry competition and mining difficulty.

Mining revenue and profitability both experienced declines in March.  

JPMorgan estimated that Bitcoin miners earned an average of $47,300 per exahash per second (EH/s) in daily block reward revenue in March, marking a 13% drop from February. Meanwhile, daily block reward gross profit fell 22% month-on-month to $23,000 per EH/s.  

Stronghold Digital Mining outperformed the sector, with a 2% decline, while Cipher Mining (CIFR) saw the biggest drop, with a 45% slump in performance.