U.S.-Listed Bitcoin Miners’ Share of Global Hashrate Reached Record in July: JPMorgan

Bitcoin miners experienced a strong recovery in the first two weeks of the month.

JPMorgan notes that the share of US-listed Bitcoin miners in the global hashrate has reached a record 26.6 percent.

The bank noted that all miners except Stronghold Digital outperformed Bitcoin during this period.

Bitcoin {{BTC}} mining stocks hit record highs in the first two weeks of this month, with both pure-play and high-performance computing (HPC) miners gaining value, JPMorgan said in a research report on Tuesday.

“The share of global hashrate by US-listed miners has reached a record 26.6%,” analysts Reginald Smith and Charles Pearce wrote, adding that this represents an encouraging increase of 2.4% since late June and 5.6% since the Bitcoin halving.

Hash rate refers to the total combined computing power used to mine and process transactions on the proof-of-work blockchain and represents the competition and mining difficulty in the industry.

The combined market value of the 14 US-listed Bitcoin miners tracked by the bank has increased by 29% since the end of June and is now trading at “a record 2.6 times their proportional share of the four-year block reward.”

The report noted that this indicates that the market believes that the AI ​​and HPC opportunity could offer alternative and more rewarding use cases for bitcoin mining sites.

The bank noted that the network hash rate has increased by 1% since June but is still around 60 exahashes per second (EH/s) below pre-halving levels.

The bank said that US-listed miners added a total of 17 EH/s of capacity in June, a record high. The gains were led by Riot Platforms (RIOT), Bitfarms (BITF), and CleanSpark (CLSK).

The bank notes that all miners have outperformed Bitcoin during this period, except for Stronghold Digital (SDIG), which is down 8%, while Cipher Mining (CIFR) led the rise with a 44% gain.

Broker Bernstein expressed similarly positive sentiments about the AI/HPC opportunity in a report last week, saying recent AI deals, including Core Scientific’s (CORZ) 12-year deal with CoreWeave and Coatue Management’s $150 million investment in HUT 8 (HUT), have become significant catalysts for the sector.

Read more: Bitcoin Mining Profitability Soars in June as Market Prepares for Halving: Jefferies