U.S.-Listed Bitcoin Miners Reach Record Market Cap of $22.8B in June: JPMorgan

Bitcoin mining stocks outpaced the performance of bitcoin in the first half of June as investors responded positively to news of Core Scientific’s partnership with AI firm CoreWeave, according to a report from JPMorgan.

The total market capitalization of the 14 U.S.-listed bitcoin mining companies tracked by the bank reached a record high of $22.8 billion on June 15. The report highlighted that nearly all these companies outperformed bitcoin during the initial two weeks of June. Core Scientific (CORZ) led the pack with a 117% gain, while Argo Blockchain (ARBK) saw a 7% decline. In comparison, the world’s largest cryptocurrency, bitcoin, fell by 3% during the same period.

The rise in mining stocks was driven by positive investor sentiment following Core Scientific’s deal with CoreWeave. This agreement is seen as a significant boost for the company, aligning it with advancements in artificial intelligence technology.

Additionally, the mining difficulty and network hashrate—a measure of industry competition and difficulty—have shown interesting trends. Since May, the network hashrate has declined by approximately 7 EH/s (1%). Analysts Reginald Smith and Charles Pearce noted this decrease, linking it to the ongoing adjustments following April’s reward halving.

U.S.-listed bitcoin miners have increased their share of the global network hashrate for the second consecutive month, now accounting for around 23.8%, nearly a 1% increase from the previous month. This growth indicates that less efficient private operators have scaled back operations post-halving, allowing more efficient U.S. miners to gain a larger share.

In summary, the report suggests a robust performance for U.S.-listed bitcoin mining stocks, supported by strategic deals and favorable market conditions, despite the overall dip in bitcoin’s value.