The first half of July proved to be a banner period for U.S.-listed Bitcoin miners, according to a recent report by JPMorgan. The research, published on July 16, 2024, highlights a surge in both stock prices and hashrate contribution from American mining companies.
Dominating Hashrate
JPMorgan analysts Reginald Smith and Charles Pearce noted that publicly traded Bitcoin miners in the U.S. now account for a record 26.6% of the global hashrate. This represents a significant increase of 2.4% since the end of June and a jump of 5.6% since the most recent Bitcoin halving event.
Hashrate refers to the combined computational power dedicated to securing the Bitcoin network. A higher hashrate indicates increased competition among miners and a more secure network. The U.S. share of this hashrate suggests a growing presence of American miners on the global stage.
Market Buoyed by Future Potential
The report further emphasizes the strong performance of U.S. Bitcoin mining stocks. The aggregate market capitalization of the 14 tracked miners by JPMorgan rose by a remarkable 29% since June. Interestingly, this growth outpaces the miners’ proportional share of the four-year Bitcoin block reward, reaching a record high valuation.
JPMorgan suggests this investor enthusiasm might be fueled by the potential for artificial intelligence (AI) and high-performance computing (HPC) applications within Bitcoin mining facilities. The ability to leverage this infrastructure for alternative purposes could create additional revenue streams for miners.
Positive Industry Trends
The report acknowledges a slight increase in the overall network hashrate compared to June. However, it remains below pre-halving levels. Notably, U.S.-based miners significantly expanded their capacity in June, adding a total of 17 EH/s (exahashes per second) – the highest level ever recorded. Companies like Riot Platforms (RIOT), Bitfarms (BITF), and CleanSpark (CLSK) were at the forefront of this growth.
JPMorgan’s findings align with recent positive sentiment expressed by other market players. Investment bank Bernstein released a report highlighting the AI/HPC opportunity as a key catalyst for the Bitcoin mining sector. They point to strategic partnerships, such as Core Scientific’s (CORZ) agreement with CoreWeave and the $150 million investment in HUT 8 (HUT) by Coatue Management, as evidence of this growing trend.
Overall, the JPMorgan report paints a rosy picture for U.S.-listed Bitcoin miners. With a record share of global hashrate, strong stock performance, and the potential for future applications beyond traditional mining, the industry appears to be on a promising trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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