The Bitcoin network hashrate declined approximately 3% in June 2025, according to a recent JPMorgan research report. The drop in computational power was primarily driven by seasonal weather-related curtailments, as miners across the southern United States — particularly Texas — scaled back operations in response to the ongoing heatwave.
What is Hashrate and Why It Matters for Bitcoin Mining
Hashrate refers to the total computational power used by miners to validate transactions and secure the Bitcoin network. Measured in exahashes per second (EH/s), a higher hashrate typically indicates stronger network security and increased mining competition.
A decline in hashrate often reflects operational constraints, rising energy costs, or environmental conditions affecting mining hardware.
In June, the average Bitcoin network hashrate dropped despite rising profitability — showing a rare decoupling between network participation and financial incentive.
Texas-Based Miners Scaled Down Amid Heatwave
JPMorgan analysts Reginald Smith and Charles Pearce noted that miners like Cipher, IREN, and Riot Platforms — collectively operating over 80 EH/s in Texas — significantly curtailed operations due to record-high summer temperatures.
These miners paused or slowed down rigs to reduce power consumption during periods of electricity demand strain, as required by local grid balancing programs.
Mining Profitability Rebounds Despite Lower Hashrate
Interestingly, Bitcoin mining profitability surged during the same period. According to JPMorgan:
- Daily block reward revenue per EH/s rose to $55,300 in June — up 7% from April.
- Gross mining profits jumped 13% month-on-month, reaching the highest level since January 2025.
This was largely attributed to higher Bitcoin prices, combined with reduced network difficulty due to fewer competing miners.
Miners With AI/HPC Exposure Outperform Pure-Play Rivals
The report also highlights a performance gap among miners. Companies with high-performance computing (HPC) or AI infrastructure exposure outshined traditional mining firms.
IREN (formerly Iris Energy) led the pack with a 67% stock gain, while Bitfarms (BITF) lagged behind with a 19% drop.
This outperformance is partly tied to speculation around Core Scientific’s deal with CoreWeave, reflecting investor interest in diversified compute business models.
Bitcoin Mining Industry Adapts to Seasonal and Strategic Shifts
While heatwaves temporarily disrupted mining operations, the Bitcoin mining sector remains robust, with rising profitability and strategic pivots into AI and HPC sectors. As energy costs and weather events become more frequent, miners may continue adapting through flexible infrastructure and geographic diversification.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.