The entire market cap of the 14 U.S.-listed bitcoin (BTC) miners tracked by JPMorgan (JPM) dropped 25% in March, the third-worst month-to-month efficiency on report, the Wall Road financial institution stated Tuesday.
Just one inventory, Stronghold Digital Mining (SDIG), outperformed bitcoin (BTC) final month, the report famous. Bitfarms (BITF) accomplished its acquisition of the corporate on March 17. Miners with excessive efficiency computing (HPC) publicity underperformed pure-play miners for the second month in a row.
“We be aware valuations right this moment are on the lowest ranges relative to the block reward because the collapse of FTX within the Fall of 2023,” analysts Reginald Smith and Charles Pearce wrote.
The typical community hashrate inched larger throughout the month to 816 exahashes per second (EH/s), the report stated. The hashrate refers back to the whole mixed computational energy used to mine and course of transactions on a proof-of-work blockchain, and is a proxy for competitors within the business and mining problem.
Mining income and profitability each fell.
“We estimate bitcoin miners earned a median of $47,300 per EH/s in day by day block reward income in March, down 13% from February,” the financial institution stated. Day by day block reward gross revenue dropped 22% month-on-month to $23,000 per EH/s.
Stronghold Digital outperformed the sector final month with a 2% decline. Cipher Mining (CIFR) underperformed with a forty five% droop.
Learn extra: Bitcoin Community Hashrate Inched Greater in March as Mining Economics Weakened: JPMorgan
UPDATE (April 1, 14:25 UTC): Provides Bitfarms’ buy of Stronghold Digital in second paragraph.