Bitcoin miners have experienced a strong rally in the first two weeks of this month, with U.S.-listed miners’ share of the global hashrate hitting a record 26.6%. According to a research report by JPMorgan, every miner except Stronghold Digital outperformed bitcoin during this period. The total market cap of the 14 bitcoin miners listed in the U.S. that the bank tracks rose 29% since the end of June, reaching the highest level on record at 2.6 times their proportional share of the four-year block reward.
Hashrate, which refers to the total combined computational power used for mining and processing transactions on a proof-of-work blockchain, is seen as a proxy for competition and mining difficulty in the industry. Despite a 1% increase in the network hashrate since June, it is still about 60 exahashes per second below pre-halving levels. However, miners listed in the U.S. added a total of 17 EH/s of capacity in June, reaching the highest level on record. Leading the gains were Riot Platforms, Bitfarms, and CleanSpark.
The market seems to be recognizing the potential for artificial intelligence and high performance computing use cases for bitcoin mining sites. Analysts suggest that recent AI deals, such as Core Scientific’s 12-year agreement with CoreWeave and Coatue Management’s $150 million investment in HUT 8, have become key catalysts for the sector. Broker Bernstein also expressed positive sentiment about the AI/HPC opportunity in a recent report, highlighting the potential for alternative and more accretive use cases for bitcoin mining sites.
Despite the overall positive trend in the bitcoin mining sector, Stronghold Digital was the only miner that underperformed during this period, dropping by 8%. On the other hand, Cipher Mining led advancers with a 44% gain. This suggests that there is growing interest and investment in the sector, with various miners exploring new opportunities and partnerships to drive growth and profitability. The market believes that AI and HPC could offer significant potential for the sector, leading to increased investment and market valuations for bitcoin miners.
Overall, the research report by JPMorgan indicates a strong performance by U.S.-listed bitcoin miners in the first two weeks of this month. With the market cap of bitcoin miners hitting record highs and miners’ share of the global hashrate increasing, there is a growing belief in the potential for alternative and more accretive use cases for bitcoin mining sites. The recent gains in hashrate and capacity by U.S.-listed miners, along with positive sentiment from analysts and brokers, suggest that the future looks promising for the bitcoin mining sector. As the market continues to evolve and explore new opportunities, bitcoin miners are likely to benefit from the growing interest in AI and HPC use cases.
