Bitcoin Miners with HPC Exposure Underperform BTC for Third Month in a Row: JPMorgan

Bitcoin (BTC) mining companies using high-performance computing (HPC) have failed to catch up with the world's largest cryptocurrency for the third month in a row, JPMorgan said in a research report published on Thursday.

Some Bitcoin miners have begun to shift to new areas of activity, such as providing HPC services for the rapidly growing artificial intelligence (AI) market, to reduce their dependence on cryptocurrencies.

“We have seen HPC risk miners (IREN, RIOT, WULF, HUT) underperform compared to BTC for three months in a row,” analysts Reginald Smith and Charles Pierce point out.

Mining profitability fell 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 is 6% compared to the previous month, reaching 872 EH/s in April.

“This is the second-largest consecutive increase in average monthly network hashrate ever recorded,” the authors note.

Hashrate is the total computing power used to mine and process transactions on a proof-of-work blockchain and is an indicator of industry competitiveness and mining difficulty.

The combined market capitalization of the 13 U.S.-listed mining stocks the bank tracks has risen 12% since March.

Greenidge (GREE) saw significant gains in April, up 46%.

Read More: Q1 Bitcoin Mining Results Could Be Disappointing as Hash Rate Drops, Fees Rise: CoinShares

Source: cryptonews.net