Bitcoin Mining Struggles: JPMorgan Reports Three-Month Underperformance Amid Shift to AI Services

On May 1st, COINOTAG reported insights from a recent research report by JPMorgan Chase, highlighting a significant trend in the Bitcoin mining sector. Throughout April, mining companies specializing in high-performance computing (HPC) faced consistent challenges, underperforming relative to Bitcoin for three consecutive months. In response to this downturn, several firms are pivoting their operations towards the burgeoning artificial intelligence (AI) market, providing HPC services to diversify their revenue streams. This strategic shift comes as April saw a decline of 6% in daily block rewards, attributed to an increased network hash rate. The average hash rate skyrocketed to approximately 872 EH/s, marking a 6% increase month-over-month, the second highest recorded. Notably, the market capitalization of 13 mining stocks listed in the U.S. rose by 12% since March, with Greenidge (GREE) emerging as a standout performer, boasting an impressive 46% gain during April.