Bitcoin mining stocks generally ended 2025 on a high note, despite a brutal showing in December.
In their December Bitcoin Mining Monthly research note, J.P. Morgan analysts Reggie Smith and Charles Pearce reported that the aggregate market capitalization of 14 bitcoin miners fell 18% month-over-month in December 2025 to $48 billion, as daily bitcoin mining revenue dropped 7%. Despite this, the sector finished 2025 with a 73% gain in total market value even after a pullback from October highs of $70 billion.
The monthly average price of bitcoin (BTC) slid 8% in December to $88,950. Prices exited the year slightly lower with a seven-day rolling average of roughly $88,500. The annualized volatility for the asset decreased to 39% during the period, down from 48% the prior month.
Mining economics faced significant pressure as the drop in bitcoin prices coincided with sustained difficulty levels. December’s average daily revenue of $38,700 per EH represented the lowest level on record for the industry. Accordingly, gross profit per EH declined 9% to $17,100, resulting in estimated gross margins of 44%.
Network hashrate declined for the second consecutive month in December as miners were squeezed out by the revenue compression. The monthly average fell 3% to 1,045 EH/S in December, and the seven-day moving average ended the month at 1,043 EH/S, a decrease of 22 EH/S from the end of November.
J.P. Morgan estimates that the fleet efficiency for bitcoin miners across the network averaged 20 J/TH in December, while also estimating an average power cost of $45 per megawatt-hour.
Valuations for the sector have contracted but remain elevated compared to historical averages. The cohort J.P. Morgan tracks traded at 107% of the four-year block reward opportunity as of December 31. This figure is down from a record high of approximately 120% but remains more than double the historical average of 45%.
Investors have re-rated the sector as operators diversify away from pure-play mining toward high-performance computing (HPC) and AI cloud services. Miners signed over 3 gigawatts of gross capacity to HPC and AI colocation throughout 2025.
Individual stock performance varied significantly during the final month of the year. Hut 8 (NASDAQ: HUT) shares rose 2% in December, supported by a recent deal with Fluidstack. CleanSpark (NASDAQ: CLSK) posted the steepest decline among the group, falling 33% during the month.
Only two of the 14 tracked companies outperformed the price of bitcoin in December, but nine companies beat the return of the digital asset over the full course of 2025. IREN (NASDAQ: IREN) and Cipher Mining (NASDAQ: CIFR) led the annual performance with gains of 285% and 218%, respectively.