By Will Canny | Edited by Sheldon Reback

Published 9 minutes ago

The Bitcoin network's monthly average hashrate dropped approximately 3% in June, according to a recent research report by JPMorgan. The decline in hashrate—a key measure of the total computational power securing the Bitcoin blockchain—was primarily attributed to miners curtailing operations amid intense summer heat across parts of the United States.

JPMorgan analysts Reginald Smith and Charles Pearce noted that seasonal weather-related disruptions, particularly in Texas, were the main driver of the hashrate dip. Texas hosts a significant portion of U.S.-based mining power, with firms like Cipher, IREN, and Riot collectively managing over 80 exahashes per second (EH/s) in the region. As temperatures soared, many mining operators scaled back operations to reduce energy consumption and avoid grid stress.

Despite the decline in network power, mining profitability continued to improve. JPMorgan estimates suggest that miners earned an average of $55,300 per EH/s in daily block rewards during June—marking a 7% increase from April. Additionally, daily gross profit from block rewards rose 13% month-over-month, reaching the highest level since January.

The positive shift in profitability translated into stronger market performance for public mining companies. The combined market capitalization of 13 U.S.-listed Bitcoin miners tracked by JPMorgan surged by approximately $5.3 billion in June, representing a 23% monthly increase.Miners with exposure to high-performance computing (HPC) services outperformed traditional, or “pure-play,” Bitcoin mining firms. This trend was fueled by market speculation surrounding a potential strategic deal between Core Scientific (CORZ) and CoreWeave (CRWV), which investors believe could further enhance HPC capabilities in the sector.Among individual companies, IREN (Iris Energy) emerged as the top performer with a notable 67% share price gain in June. In contrast, Bitfarms (BITF) was the group’s weakest performer, posting a 19% decline.

JPMorgan’s report highlights a broader shift in mining economics, where operational flexibility, diversified revenue streams, and regional climate sensitivity are playing increasingly crucial roles in determining miner resilience and profitability.

For more insights: U.S.-Listed Bitcoin Miners' Share of Network Hashrate Hit Record High in June: JPMorgan