Bitcoin Miners with HPC Exposure Continue to Underperform BTC for Three Months in a Row: JPMorgan
The report indicated that mining profitability decreased in April as the network hashrate increased by 6%.
Author: Will Canny | Edited by: Parikshit Mishra, Stephen Alpher Updated: May 1, 2025, 1:02 pm Published: May 1, 2025, 1:01 pm
Key points:
- Bitcoin miners using HPC performed worse than BTC for the third month in a row in April, according to a report from JPMorgan.
- The bank noted that mining profitability fell last month due to a 6% increase in the network hashrate.
- The combined market capitalization of 13 mining stocks tracked by JPMorgan rose 12% in April.
Bitcoin (BTC) mining companies using high-performance computing (HPC) have continued to lag the leading cryptocurrency for three months, according to a research report from JPMorgan Bank published on Thursday.
Some Bitcoin miners are starting to shift to new business lines, such as offering HPC services to the rapidly growing artificial intelligence (AI) market, to reduce their dependence on cryptocurrencies.
“We see HPC risk miners (IREN, RIOT, WULF, HUT) underperforming against BTC for the third month in a row,” analysts Reginald Smith and Charles Pierce said.
Mining profitability decreased in April due to an increase in the network hashrate.
According to the bank, daily block reward income decreased by 6% compared to March, while the average monthly hashrate increased by about 56 exahashes per second (EH/s), which was 6% compared to the previous month, reaching 872 EH/s in April.
“This is the second largest consecutive increase in the network’s average monthly hashrate on record,” the authors note.
Hashrate refers to the total computing power used to mine and process transactions on a proof-of-work blockchain and serves as an indicator of industry competition and mining difficulty.
The total market capitalization of 13 U.S. mining stocks tracked by the bank has risen 12% since March.
Greenidge (GREE) saw significant gains in April, up 46%.
Read more: Q1 Bitcoin Mining Results Could Disappoint as Hash Rate Drops, Fees Increase: CoinShares
