Bitcoin News Today: Bitcoin Miners Pressed by Rising Hashrate, Falling Prices as Payouts Rise

The broader Bitcoin mining industry has also experienced heightened competition, with the network hashrate hitting record levels. This surge in competition has placed significant pressure on profitability, especially for less efficient miners. JPMorgan recently reported a 26% decline in daily block reward gross profit for Bitcoin miners in November, marking the fourth consecutive month of decline.

Industry-Wide Challenges and Expansion Strategies

Bitcoin mining profitability has declined across the board, with the combined market cap of major U.S.-listed miners falling 16% in November. JPMorgan analysts noted that Bitcoin miners earned an average of $41,400 per EH/s in daily block reward revenue in November, down 14% from October and 20% year-over-year. The decline in profitability is largely attributed to a combination of rising network hashrate and falling Bitcoin prices.

Despite these challenges, some companies have continued to expand their operations. CleanSpark, for instance, increased its contracted power capacity to over 1.4 gigawatts, enabling the company to scale its mining fleet. The company also reported a 11% increase in November Bitcoin production compared to October. This expansion strategy has been supported by a $1.15 billion zero-coupon convertible note offering, providing the firm with long-term financing at no interest cost.

Market Reactions and Future Outlook

The Bitcoin ETF market has shown signs of robust growth, with BlackRock's spot Bitcoin ETF (IBIT) reaching $70 billion in assets in just 341 days. This ETF has become BlackRock's top revenue source, generating an estimated $245 million in annual fees. The firm's own Strategic Income Opportunities Portfolio has increased its stake in IBIT by 14%, indicating continued confidence in the ETF's long-term growth. According to market analysis, the ETF market continues to grow.

The market for crypto ATMs is also showing strong growth, with the global market projected to soar from $191.13 million in 2025 to $1.20 billion in 2030. This growth is being driven by rising cryptocurrency adoption and expanding installations in sectors such as hospitality and retail. The report highlighted the importance of accessible transaction points as global crypto users continue to grow.

Analysts are closely watching how Bitcoin miners adapt to the current environment. Companies with clear strategies and efficient operations are expected to outperform in the long term, while those unable to communicate or execute effectively may face consolidation or exit the market. Elliot Chun of Architect Partners noted that most Bitcoin digital asset treasuries (DATs) are untested but have the potential to become household names if they can navigate the next few years of volatility.