In a subtle yet noteworthy development, the Bitcoin network’s hashrate ticked up by 2% during the initial fortnight of May, averaging an impressive 885 exahashes per second (EH/s), according to a recent analysis by JPMorgan. This uptick, while modest, signals an intriguing shift in the landscape of cryptocurrency mining—a sector where computational power equates to competitive edge.
Miners Reap Rewards Amid Rising Bitcoin Prices
Bitcoin miners found themselves in an enviable position as the month of May unfolded. With Bitcoin prices on an upward trajectory, miner profitability saw a significant boost. JPMorgan analysts Reginald Smith and Charles Pearce noted that the hashprice—a key metric denoting daily mining profitability—saw a 13% increase from April. “Encouraging,” they called it, and not without reason. This surge translated into miners earning approximately $50,100 in daily block reward revenue per EH/s over the first half of the month—a 13% month-over-month and 3% year-over-year increase. This aligns with broader market trends, as discussed in our recent article on how Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow.
The rise in Bitcoin’s price, coupled with these profitability gains, has expanded miners’ gross margins, offering a much-needed reprieve in a sector often beleaguered by volatility. U.S.-listed miners, in particular, maintained their foothold, capturing about 30.5% of the network’s hashrate—a 1.1% bump from the previous month.
Market Dynamics and Miner Performance
The broader market dynamics tell an even more compelling story. The total market cap of the 13 U.S.-listed bitcoin mining stocks tracked by JPMorgan surged by 24%, or $4.6 billion, in May. Among the standout performers was Bitdeer (BTDR), which saw its valuation soar by 43%. In stark contrast, Greenidge (GREE) underperformed, with a 5% decline—a reminder that not all players reap equal rewards in this high-stakes game.
This divergence in performance among miners isn’t merely a footnote; it underscores the inherent volatility and the range of factors influencing mining success—from operational efficiency to strategic positioning in the marketplace. As Smith and Pearce have noted, these fluctuations raise critical questions about the sustainability of current trends, particularly as traders consider strategies like ‘Sell in May and Go Away’ as Seasonality Favors Bears.
A Glimpse at the Past, A Look to the Future
Historically, the Bitcoin network’s hashrate has been a bellwether for the industry’s health. As mining difficulty adjusts to the increased computational power, the network becomes more secure and resilient—a boon for those invested in Bitcoin’s long-term viability. Yet, this rise in hashrate also hints at an intensifying competition among miners, as more players vie for the same rewards.
Looking ahead, the landscape remains fraught with uncertainty. The looming specter of regulatory changes, coupled with potential shifts in energy policy, could impact mining operations globally. And while the current trends are promising, seasoned observers will recall that the cryptocurrency market is anything but static.
As May draws to a close, the cryptocurrency community watches with bated breath. Will the upward momentum in Bitcoin’s price and mining profitability continue through the summer months? Or will the market, in its characteristic unpredictability, chart a new course? The answers remain elusive, but one thing is certain: the world of Bitcoin mining is as dynamic and intriguing as ever.
Source
This article is based on: Bitcoin Network Hashrate Rose Slightly in First Two Weeks of May: JPMorgan
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
