In June, the market cap of U.S.-listed bitcoin mining stocks reached an all-time high, according to a report from JPMorgan. The bank observed that miners performed better than bitcoin itself, particularly following Core Scientific’s partnership with CoreWeave. It was noted that U.S.-based miners saw an increase in their share of the global network hashrate for the second consecutive month.
The total market cap of the 14 U.S.-listed bitcoin miners tracked by JPMorgan reached $22.8 billion on June 15, setting a new record. The report highlighted that most of these companies outperformed bitcoin in the first half of June, with Core Scientific experiencing a significant 117% increase, while Argo Blockchain saw a 7% drop. Meanwhile, bitcoin itself declined by 3% during the same period.
Investors reacted positively to news of Core Scientific’s deal with an AI firm, which contributed to the gains in bitcoin mining stocks during the first half of June. Additionally, mining difficulty continued to decline following the reward halving that occurred in April. The network hashrate, which serves as a measure of industry competition and mining difficulty, decreased by approximately 7 EH/s (1%) since May.
U.S.-listed miners have been expanding their share of the network hashrate, with the 14 companies now accounting for around 23.8% of the global network hashrate. This marks an almost 1% gain compared to the previous month. This trend of increasing network hashrate among U.S. miners is seen as a positive development, indicating that inefficient private operators may have scaled back their operations post-halving.
Overall, the report from JPMorgan suggests that bitcoin mining stocks are performing well, with the potential for mergers and acquisitions in the sector. The increasing share of the network hashrate by U.S.-listed miners is a positive sign for the industry, demonstrating improved efficiency and competitiveness. Investors continue to show interest in the mining sector, particularly in companies with attractive power contracts.
In conclusion, the performance of U.S.-listed bitcoin mining stocks reached a record high in June, outpacing bitcoin itself. The positive reaction to industry news, such as Core Scientific’s partnership, contributed to the gains in mining stocks. The decline in mining difficulty and the increase in network hashrate among U.S. miners further highlight the sector’s strength. Moving forward, the potential for mergers and acquisitions in the mining industry presents additional opportunities for growth and investment.