Bitcoin miners are facing some of the most challenging operating conditions in recent years, according to a new report from JPMorgan analysts Reginald Smith and Charles Pierce.
Profitability in the sector has been declining for the fourth month in a row. This is due to increasing competition on the network, falling prices for the flagship coin, and tightening financial conditions, which are putting pressure on even the largest publicly traded mining companies.
According to JPMorgan, daily gross block reward revenue fell by another 26% in November. Bitcoin’s price also declined steadily throughout the month, with network competition holding back revenue despite a slight decline in hashrate (1%).
The hash rate, the revenue miners receive per unit of computing power, has fallen below critical levels. In late November, it dropped below $35 per hash, pushing several miners to the brink of breakeven. This has only heightened tensions in the industry and raised concerns about stability in 2026.
The combined market capitalization of fourteen publicly traded U.S. miners fell 16% to $59 billion in November. JPMorgan also revised down its forecast for Riot Platforms, lowering its target price due to the decline in the Bitcoin price and the effect of capital dilution.
To reduce their dependence on Bitcoin mining, some companies are being forced to reallocate resources toward artificial intelligence and high-performance computing.