U.S.-Listed Bitcoin Mining Companies See Market Cap Plunge 25% in March – JPMorgan

# Bitcoin Mining Firms in U.S. Lose $6 Billion in Market Cap in March, Reports CoinDesk The combined market capitalization of Bitcoin(BTC) mining companies listed in the U.S. plunged by approximately 25% in March, erasing roughly $6 billion, according to a report by CoinDesk on March 31. # Declining Profitability Hits Mining Revenues JP Morgan's analysis of 14 Bitcoin mining companies reveals a significant decline in both profitability and revenue. The report noted that the average daily block reward revenue per exahash (EH/s) dropped to approximately $47,300 in March, marking a 13% decrease compared to February. Moreover, the average daily gross profit per EH/s fell even more sharply by 22%, landing at around $23,000. # Hash Rate Growth Intensifies Competition The investment bank also highlighted a marginal increase in the average network hash rate, which reached 816 EH/s in March. Hash rate, a measure of the total computational power within the mining network, serves as an indicator of mining competition and difficulty. The rise in hash rate further exacerbated competition among miners, placing additional pressure on profitability margins. # Mining Firm Valuations Hit Two-Year Lows Analysts Reginald Smith and Charles Pierce noted in the report that the valuations of Bitcoin mining companies are currently at their lowest since the collapse of FTX in the fall of 2022. "On a valuation-to-reward (block reward) basis, the sector remains significantly undervalued," they said. The combination of decreasing revenues, growing competition, and falling valuations underscores the challenges faced by Bitcoin miners as they navigate a highly dynamic and competitive market landscape.