JPMorgan: 20% of Bitcoin Miners Unprofitable as Production Costs Exceed Prices

Key Facts

Amid mounting pressure on digital asset profitability, JPMorgan analysts revealed that approximately 20% of Bitcoin miners are currently operating at a loss. The report highlights that the cryptocurrency has traded below its estimated production cost for five consecutive months, placing immense operational strain on the sector. Consequently, public miners were forced to liquidate over 32,000 BTC during the first quarter to secure the liquidity needed to fund their ongoing operations.

These developments emerge as the bank estimates the production cost of Bitcoin at approximately $78,000, a level significantly higher than current market prices. In comparison to major mining peers like Marathon Digital and Riot Platforms, the market shows varying resilience to rising energy costs and mining difficulty, with Marathon's market cap sitting near $5.8 billion per market data. Recent earnings reports indicate that sector profit margins have eroded substantially since the last halving event reduced block rewards.