U.S.-listed Bitcoin miners now account for a record 28.9% of the global network hashrate, reflecting significant growth and market consolidation, according to a report released by JPMorgan on Wednesday. This surge highlights the operational efficiency and financial advantages enjoyed by publicly listed mining companies.
Network Hashrate Climbs, But Profitability Remains Flat
- The network hashrate—the total computational power used to mine and process Bitcoin transactions—has increased 4% so far in October, reaching an average of 672 EH/s.
- In comparison, the hashprice, which measures daily mining profitability, has risen by less than 1% since the end of September, signaling persistent profitability challenges.
The report noted that the total hashrate from the 14 U.S.-listed mining companies tracked by JPMorgan has surged by 70% year-to-date, from 80 EH/s to 194 EH/s. This growth far outpaced the 33% increase in the global Bitcoin network hashrate, indicating U.S.-listed miners are capturing more market share.
Bitcoin Halving Spurs Efficiency Gains
According to analysts Reginald Smith and Charles Pearce, the miners’ increased share—up 8% since the Bitcoin halving earlier this year—illustrates the competitive edge of publicly listed miners in terms of financing and infrastructure.
Mining Stocks: Winners and Losers
The total market cap of mining companies tracked by JPMorgan has risen 7% since September. However, mining stocks are currently trading at 1.9 times their share of the four-year block reward, the lowest valuation since May, which JPMorgan says may present a buying opportunity ahead of the U.S. election.
Greenidge Generation (GREE) emerged as the top performer among miners, with its stock gaining 29% in early October. In contrast, Stronghold Digital Mining (SDIG) underperformed, falling by 17%.
The report also highlighted that miners with high-performance computing (HPC) exposure continue to attract interest from hyperscale computing firms, boosting their valuations.
Jefferies Warns of October Challenges
While Bitcoin’s rally in early October gave miners some momentum, Jefferies issued a cautionary note, warning that the remainder of the month could be challenging for mining stocks. The bank’s report on Sunday suggested potential headwinds, including Bitcoin price volatility and ongoing concerns about profitability.
Conclusion
As U.S.-listed miners consolidate their dominance, the evolving landscape signals both opportunities and risks. With the Bitcoin network hashrate climbing steadily but profitability lagging, market participants will be closely monitoring how miners navigate these challenges—especially as the U.S. election and future market developments loom large.
