Bitcoin Miners Report Significant Profits in November Due to Rally in Bitcoin Prices and Increased Transaction Fees

While still below pre-halving levels, the cryptocurrency mining sector experienced a notable uptick, with publicly listed miners seeing their market cap jump 52%

Bitcoin miners saw substantial profits in November as the cryptocurrency's rally and increased transaction fees boosted their revenue.

While still below pre-halving levels, the cryptocurrency mining sector experienced a notable uptick, particularly in the second half of the month. According to JPMorgan, publicly listed miners saw their combined market cap jump 52%.

Bitcoin miners earned $52,000 daily per exahash (EH/s) in November, reflecting a 24% increase from October, analysts noted.

Bitcoin's Recent Gains Aided Miners

This boost came as Bitcoin reached new heights, notably on November 5 around the US presidential election. This activity led to a surge in transaction fees, offering miners much-needed hashprice relief, a key measure of mining profitability, Coindesk reported.

The overall network hashrate, which indicates the total computational power dedicated to mining, grew 4% month-on-month to 731 EH/s. However, the growth in mining difficulty outpaced this increase, rising by 7% from October.

Publicly traded Bitcoin miners also reaped the benefits of November's rally. The combined market capitalization of 14 miners tracked by JPMorgan jumped to $36.2 billion, a 52% increase from the previous month.

These gains highlighted the growing investor confidence in the sector amid renewed optimism about Bitcoin's performance. At the time of publication, the top cryptocurrency was trading at $95,654. The figure represents a 1.56% drop and less than 1% increase in the past day and week, respectively.

Bitcoin's annualized volatility rose to 62% in November, compared to 42% in October amid heightened market activity. Analysts attribute this uptick to the cryptocurrency's strong price movement during the month.

The report paints an optimistic picture of Bitcoin mining's near-term future, though challenges remain. Notably, despite the revenue boost in November, profitability is still around 50% below pre-halving levels.

As Bitcoin continues to evolve, the interplay between hashrate growth, transaction fees, and market dynamics will remain critical for miners navigating this volatile landscape.

Most recently, Bitcoin miner MARA Holdings framed the need for the United States to stay ahead in Bitcoin holdings and mining operations as a critical national security imperative due to growing global competition.

The country reportedly holds an estimated 200,000 Bitcoin ahead of China's 190,000 BTC holdings. Compared to gold, the US has 8,133 metric tonnes versus China's 2,264 tonnes.

Meanwhile, HIVE Digital Technologies posted a significant expansion of its BTC mining capabilities, having ordered 5,000 new miners.