Wall Street Bank JP Morgan said in a research report on Thursday that Bitcoin (BTC) mining company with high performance computing (HPC) exposure is performing the world’s largest cryptocurrency for three months in April.
Some Bitcoin miners are pivoting into new business areas, such as providing HPC services to the rapidly growing AI (AI) market to reduce their reliance on crypto.
“Miners at HPC exposures (Iren, Riot, Wulf, Hut) have been degraded BTC performance for the third consecutive month,” writes analysts Reginald Smith and Charles Pearce.
Increased network hashrates reduced mining profitability in April.
Daily block reward revenues have declined by 6% since March, the bank said the average monthly hash rate rose to 56 echhash per second (EH/s) in April, or 6% EH/s per month.
“This was the second-largest continuous increase in monthly average network hashrate on record,” the author writes.
Hashrate refers to the total computing power used to mine and process transactions on the Proof of Work Blockchain, a proxy for competition and mining difficulties in the industry.
The market capitalization of 13 US listed mining stocks tracking banks has increased by 12% since March.
Greenidge (Gree) was a well-known outperformer in April with a gain of 46%.
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