Bitcoin Mining Profitability Rebounds in December as Crypto Rally Outpaces Difficulty Growth

According to JPMorgan’s latest research analysis, bitcoin mining profitability rebounded for the second consecutive month in December, reflecting a significant recovery in the sector. The resurgence came as the cryptocurrency market’s upward momentum continued to outstrip the growth in network computational capacity, creating favorable conditions for miners.

Daily Revenue Surge Marks Second Consecutive Month of Growth

JPMorgan reported that miners’ daily earnings and gross profit climbed to their highest levels since April, driven by increased block rewards on the Bitcoin network. The bank estimated that bitcoin miners earned an average of $57,100 per exahash per second (EH/s) in daily revenue during December—a 10% increase compared to November’s figures.

The network’s computational hashrate expanded by 6% in December, reaching an average of 779 EH/s. Mining difficulty rose 7% month-over-month and now stands 27% higher than the April 2024 reward halving event baseline. This divergence between difficulty growth and price appreciation created the window for improved bitcoin mining profitability.

Mining Margins Still Trail Pre-Halving Levels Despite Recovery

While the rebound is noteworthy, analysts Reginald Smith and Charles Pearce emphasized that current profitability metrics remain substantially compressed. Daily revenue per EH/s is 43% below pre-halving levels, while gross profit per EH/s lags 52% behind the same comparison point—a sobering reminder that bitcoin mining profitability has not fully recovered despite recent gains.

The broader hashrate acceleration also tells a mixed story: 2024 saw hashrate growth of 54%, a significant slowdown compared to 2023’s 103% expansion. This moderation suggests the sector’s explosive scaling phase may be cooling.

Market Capitalization Pressures Amid Hashrate Acceleration

The publicly listed bitcoin mining sector faced headwinds despite operational improvements. The combined market cap of 14 major publicly traded miners tracked by JPMorgan declined 23% to $28 billion in December, reversing November’s 52% gain. This disconnection between operational profitability and equity valuations reflects broader market sentiment.

TeraWulf (WULF) emerged as an outlier, delivering a 136% return in 2024—outperforming Bitcoin’s approximately 120% gain. Most mining stocks, however, failed to capture the cryptocurrency’s upside, suggesting investor concerns about long-term margin sustainability persist.

Current Bitcoin trading near $68,320 indicates the market continues testing support and resistance levels, with key price zones at $72,000 and $78,000 representing critical technical barriers for confirming sustained uptrend strength in mining-related assets.