In an unsettling slide during March, the aggregate market capitalization of 14 bitcoin miners listed in the U.S., tracked meticulously by JPMorgan (JPM), plummeted by 25% — marking the third most severe monthly drop ever recorded, the Wall Street institution revealed on Tuesday.
Standouts and Strugglers Amid the Downturn
Amid this widespread retreat, only one player, Stronghold Digital Mining (SDIG), managed to outpace bitcoin (BTC) itself, the analysis highlighted. Intriguingly, on March 17, Bitfarms (BITF) finalized its acquisition of Stronghold, adding a twist to the miner landscape. For the second consecutive month, miners tied to high performance computing (HPC) exposure lagged behind those focused solely on mining operations.
Valuations Near Historic Lows
“Current valuations have sunk to their lowest point relative to the block reward since the dramatic FTX collapse in late 2023,” remarked analysts Reginald Smith and Charles Pearce, putting the industry’s mood into perspective.
Mining Ecosystem: Hashrate and Profitability Trends
The average network hashrate nudged upward through March, settling at 816 exahashes per second (EH/s). This key metric — denoting the total cumulative computational muscle deployed for mining and transaction validation on the proof-of-work blockchain — offers a snapshot of industry rivalry and the escalating challenge of mining difficulty.
Mining revenues and profits took a hit, reflecting tighter margins across the board.
Key Industry Metrics Snapshot:
- Estimated bitcoin miner earnings: $47,300 per EH/s per day in block reward revenue for March
- A 13% decrease from February’s figures
- Daily block reward gross profits contracted by 22% month-over-month, landing at $23,000 per EH/s
Performance Highlights: Winners and Losers
Stronghold Digital stood out with a comparatively modest 2% dip, outperforming the broader mining sector’s struggles. Meanwhile, Cipher Mining (CIFR) experienced a severe setback, plunging 45% during the same period.
