Bitcoin (BTC) Mining Profitability Fell for Third Straight Month in September: JPMorgan

Daily block reward gross profit fell to the lowest "on recent record" last month, the report said.

Bitcoin mining profitability fell for a third consecutive month in September, as the average daily mining revenue and gross profit declined amid a slight rise in the average bitcoin price and network hashrate, according to a JPMorgan research report.

The average bitcoin price rose 2% in September to $41,200, while the network hashrate also edged up by 2% from the prior month to 643 exahashes per second (EH/s), as per the report. Hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain.

JPMorgan estimated that miners earned an average of $42,100 per EH/s in daily block reward revenue last month, a 6% decrease from the average of $44,800 per EH/s in August.

"We estimate daily block reward gross profit declined 6% month on month (m/m) to $16,100 per EH/s (38.4% gross margin) in September, the lowest point on recent record," analysts Reginald Smith and Charles Pearce wrote in the report.

The daily gross profit fell for a third straight month and reached the lowest level "on recent record," the report noted. Transaction fees were also largely subdued and didn't reach more than 5% of the block reward, according to the authors.

The total market capitalization of the 14 U.S.-listed miners tracked by the bank rose 4% to $21 billion. Hut 8 (HUT) outperformed with a 21% gain last month, and CleanSpark (CLSK) was at the bottom of the list with a 13% decline.

Bitcoin's annualized volatility was 44% last month, a drop from the 62% seen in August, the report added.

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