The Bitcoin network’s hashrate, a key indicator of mining competition, fell for a second straight month in December, according to JPMorgan (JPM).

Analysts Reginald Smith and Charles Pearce reported that the monthly average network hashrate dropped 30 EH/s, or 3% month-over-month, to 1,045 EH/s. The hashrate measures the total computational power dedicated to mining and processing transactions on a proof-of-work blockchain.

Despite the reduced competition, mining profitability declined. JPMorgan estimated miners earned $38,700 per EH/s in daily block reward revenue last month, down 7% from November and 32% year-over-year — the lowest level on record. Daily block reward gross profit also fell 9% to $17,100 per EH/s.

The report did not specify the exact reasons, but falling bitcoin prices since October likely added pressure, along with the effects of the recent halving and rising energy costs.

Not all trends were negative. The combined market capitalization of 14 U.S.-listed bitcoin miners and data center operators tracked by JPMorgan rose to $48 billion by year-end, up 73% for 2025. Hut 8 (HUT) gained 2% last month, while CleanSpark (CLSK) fell 33%.

Over the full year, nine of the 14 companies outperformed bitcoin, led by IREN (IREN) and Cipher Mining (CIFR), although only two surpassed bitcoin in December.