Analysts at %JPMorganChase (NYSE: $JPM) say that %Bitcoin (CRYPTO: $BTC) mining profitability is at a record low after a halving event lowered the available supply of the largest %Cryptocurrency by 50%.
In a new report, the U.S. bank estimates that Bitcoin miners earned an average of $43,600 U.S. per digital token in reward revenue during August, the lowest level on record.
At its peak in November 2021, Bitcoin miners were earning $342,000 U.S. in reward revenue.
Bitcoin miners are not only struggling after the halving event that took place this April cut the rewards for mining the biggest crypto by 50%.
They are also dealing with a prolonged slump in the price of Bitcoin and rising energy costs.
At the same time, the difficulty in mining Bitcoin increased 9% last month, and is 4% higher than before the April halving event.
The current situation has conspired to push the profitability of Bitcoin mining to an all-time low, noted JPMorgan in its report.
Consequently, the share prices of Bitcoin mining firms are declining.
The total market capitalization of the 14 U.S.-listed miners tracked by JPMorgan fell 15% month-over-month to $20 billion U.S. in August.
The turmoil has led to a wave of consolidations and attempted takeovers among Bitcoin miners as they seek to achieve economies of scale.
%RiotPlatforms (CRYPTO: $RIOT), for example, is currently engaged in a hostile takeover bid for rival Bitcoin miner %Bitfarms (NASDAQ: $BITF).
The price of Bitcoin is currently up 28% this year and trading at $56,600 U.S.
