Bitcoin miners are set to see increased profits in December, thanks to the recent surge in Bitcoin’s value, according to a report by investment bank Jefferies. The rise in BTC prices has outpaced the increase in network hashrate, leading to improved mining economics in November.
The report, released on December 19, 2024, highlighted the positive trend in Bitcoin mining profitability. Analysts Jonathan Petersen and Jan Aygul noted that the average price of Bitcoin was up by 31% in November, while the average network hashrate saw a nearly 4% increase. This combination has resulted in a 20.7% month-on-month rise in average daily revenue per exahash, reaching $55,649.
Jefferies also pointed out that despite U.S.-listed miners mining less Bitcoin in November compared to the previous month, they contributed more to the overall network, making up 24.7% of the total network. The improved uptime during this period could be attributed to colder temperatures as winter approaches, the report suggested.
Among the top-performing miners in November, MARA Holdings (MARA) emerged as the leader, mining 907 Bitcoins, followed by CleanSpark (CLSK) with 622 Bitcoins. MARA maintained the largest installed hashrate in the sector at 46.1 exahashes per second (EH/s), with CleanSpark closely behind at 33.7 EH/s.
As Bitcoin continues to reach record highs, miners are poised to benefit from the favorable mining economics. The report by Jefferies provides insights into the ongoing trends in the industry and highlights the potential for continued profitability in the coming month.
Expert Insights
Will Canny, a seasoned market reporter covering the crypto beat at CoinDesk, emphasized the significance of Bitcoin’s price surge in driving mining profitability. With a deep understanding of the financial services industry, Canny’s analysis adds valuable context to the report’s findings. His expertise sheds light on the implications of Bitcoin’s performance on the mining sector, offering a comprehensive view of the market dynamics at play.
Industry Trends
The data presented by Jefferies underscores the resilience of Bitcoin mining economics, showcasing how miners have navigated changing market conditions to sustain profitability. By examining key metrics such as network hashrate, daily revenue, and miner performance, the report paints a detailed picture of the evolving landscape of cryptocurrency mining. As the industry continues to evolve, these insights serve as a guide for stakeholders seeking to understand and capitalize on emerging opportunities in the market.
Future Outlook
Looking ahead, the projections for December indicate a continuation of the positive trend for Bitcoin miners. With the support of favorable market conditions and increasing demand for cryptocurrencies, miners are well-positioned to capitalize on the ongoing rally in Bitcoin prices. By leveraging the insights provided by reports like Jefferies’, stakeholders can make informed decisions to maximize their returns in the dynamic world of cryptocurrency mining.