U.S.-Listed Bitcoin Miners Hit Record 29% of Network Hashrate in October: JPMorgan

As a seasoned researcher with a keen interest in the ever-evolving world of cryptocurrencies and blockchain technology, I find the recent revelations by JPMorgan regarding the dominance of U.S.-listed bitcoin mining stocks particularly intriguing. The surge in their combined hashrate to 28.9% of the network hashrate is a testament to their efficiency and financial prowess in this space.

Based on data from the fourteen U.S. Bitcoin (BTC) mining stocks monitored by JPMorgan, the combined mining power (or hashrate) now makes up an unprecedented 28.9% of the total network’s hashrate, as stated in a research report released on Wednesday by the investment bank.

Analysts Reginald Smith and Charles Pearce noted that the total hashrate of the 14 U.S.-based miners we follow has risen approximately 70% this year, growing from 80 to 194 exahashes per second (EH/s). In contrast, the overall network hashrate has increased by 33%. As a result, these miners now represent an unprecedented 28.9% of the global network’s total hashrate.

The banking institution stated that there has been a nearly 8% growth since the Bitcoin halving incident earlier in the year, which is indicative of the operational efficiencies and financial benefits enjoyed by certain publicly traded mining companies.

JPMorgan points out that the network’s computational power, known as hashrate, has grown by around 4% this month, averaging at about 672 exahashes per second (EH/s). To put it simply, hashrate represents the total collective processing strength used to mine and verify transactions on a blockchain that relies on proof-of-work. On the other hand, the hashprice, which gauges daily mining profitability, has risen by less than 1% since late September.

Over the past few weeks, the combined market value of the miners that the bank supports has increased by approximately 7%. This current trading value is now equivalent to 1.9 times their share of the four-year block reward, which is the lowest it’s been since May. This situation might present a promising “opportunity for investment as we approach the election.

During the first fortnight of this month, mining stocks experienced a surge due to bitcoin’s growth and ongoing deal interest from large-scale computing companies (hyperscalers). Among these, Greenidge Generation (GREE) outperformed significantly, climbing by 29%, while Stronghold Digital Mining (SDIG) underperformed the sector with a 17% decline.

In a recent research report published on Sunday, competitor bank Jefferies on Wall Street expressed concerns that October might pose challenges for the mining sector.