Miners Set for 2025 Triumph: Strong Start Marks Bitcoin Mining Stocks’ Rise!

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What to know:

  • Bitcoin miners have enjoyed a strong start to the year and have outperformed the digital asset, the report said.
  • The combined hashrate of the 14 miners tracked by the bank accounts for about 30% of the global network.
  • The total market cap of these companies has increased 16% since the start of the year.

14 Bitcoin (BTC) mining stock companies monitored by JPMorgan have had a robust beginning to the year, as 12 of these firms have surpassed the performance of the world’s largest cryptocurrency during the first fortnight, according to a research report released by the Wall Street bank on Thursday.

In the past month, the network’s hash rate has climbed by 2%, averaging approximately 793 billion hashes per second (EH/s), and it is currently 51% greater than it was a year prior, according to the report.

In simpler terms, the hashrate represents the total collective processing capability employed for both mining (creating new blocks) and verifying transactions on a proof-of-work blockchain. It serves as an indicator of the level of competition within the industry and the challenge faced when trying to mine these digital assets.

According to the bank’s observation, the daily mining profitability indicator, known as hashprice, has decreased by almost 1%, contrary to expectations. This reduction is due to the fact that the increase in hashrate (the total computing power being used for mining) surpassed the growth of Bitcoin prices.

According to analysts Reginald Smith and Charles Pearce, miners were earning approximately $54,900 in daily block reward revenue per hash rate second (EH/s) during the initial fortnight of January, representing a 2% decrease compared to the previous month’s earnings.

As a crypto investor, I’ve noticed that the collective hashrate of the 14 U.S. miner companies followed by my bank has surged over the past year, almost doubling, and currently represents approximately one-third of the entire global mining network.

In the opening fortnight of this year, the cumulative market value of the mining stocks monitored by the bank has risen by 16%, amounting to approximately $4.5 billion. Among these, Riot Platforms (RIOT) demonstrated exceptional performance with a 32% increase, while Bitdeer fell short, experiencing a 4% decrease.

As a researcher examining the cryptocurrency market, I’ve noticed some significant growth in Bitcoin over the past few months. Specifically, it has surged approximately 56% since the halving event in April, and following the U.S. presidential election in November, it experienced an increase of roughly 44%. When compared to this time last year, Bitcoin has impressively gained 134%.

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2025-01-17 12:49