**Bitcoin Mining Profitability Hits Fresh Low as Network Hash Rate Slows**

JPMorgan's latest analysis reveals a concerning trend for the Bitcoin mining sector heading into 2025. The BTC network hash rate weakened for a second straight month, sliding 3% to 1,045 EH/s—a 30 EH/s decline that signals shifting mining dynamics across the industry. More troubling for operators: profitability metrics have compressed significantly.

**Mining Economics Under Pressure**

The numbers paint a stark picture. Daily block reward revenue per EH/s averaged $38,700 last month, representing a 7% drop from the prior period and a staggering 32% year-on-year decline—the lowest recorded level to date. Gross daily profit margins compressed further, falling 9% to $17,100 per EH/s. These metrics underscore the mounting pressure miners face as network competition intensifies and operational costs remain elevated.

**Mixed Performance Among Publicly Traded Miners**

Among 14 publicly listed Bitcoin mining companies and data center operators tracked by JPMorgan, portfolio performance diverged sharply. The total market capitalization of these firms reached $48 billion by year-end 2025, marking a robust 73% annual gain. However, individual results varied considerably.

Hut 8 (HUT) emerged as December's strongest performer, notching a 2% monthly gain, while CleanSpark (CLSK) suffered the steepest decline at 33%. Looking across the full year, 9 of the 14 firms outpaced Bitcoin's returns—led by IREN (IREN) and Cipher Mining (CIFR)—despite December's broader weakness in the mining cohort.

This divergence reflects how operational efficiency and strategic positioning now matter as much as macro Bitcoin movements. The network hash rate slowdown could signal consolidation ahead, favoring well-capitalized operators while pressuring marginal players.