According to Binance, crypto mining on proof-of-work networks like Bitcoin (BTC) is the process of validating transactions and adding blocks by expending hash power to earn block rewards and transaction fees, with success determined by a miner’s share of total network hash rate and current difficulty, as outlined by Binance Academy. Binance Academy identifies the main profitability drivers as BTC price, block reward and fees, network difficulty and total hash rate, hardware efficiency measured in joules per terahash, electricity cost per kWh, pool fees and uptime, and cooling and location overheads. Binance explains that difficulty auto-adjusts to target block intervals, so rising network hash rate and difficulty compress unit revenue, while halving reduces the block subsidy and tightens margins unless offset by BTC price or fee increases, per Binance Academy. For traders, Binance Academy notes that shifts in miner profitability can lead to rigs going offline or online, altering network hash rate and difficulty trends that serve as on-chain signals for market conditions and fee dynamics relevant to BTC liquidity and execution.

According to @CoinMarketCap, JPMorgan analysts reported that Bitcoin mining profitability declined for the fourth consecutive month in November, falling 14% from October and 20% year over year, based on their latest analysis shared on December 2, 2025. Source: JPMorgan analysts via @CoinMarketCap post on X, December 2, 2025.