U.S. Miners See Significant Growth
According to a recent report by JPMorgan, the total hashrate of U.S.-listed bitcoin (BTC) miners has nearly doubled compared to last year, now representing approximately 29% of the global bitcoin network. This remarkable increase underscores the growing influence of American mining operations in the cryptocurrency landscape.
Hashrate Surge Compared to Global Trends
The report highlights that the combined hashrate of 14 U.S.-based mining companies surged by about 95% year-over-year, reaching an impressive 244 EH/s. In contrast, the overall network hashrate saw a more modest increase of 45%. This disparity suggests that U.S. miners are gaining a competitive edge in an increasingly crowded market.
Network Hashrate and Mining Difficulty
The network hashrate serves as a crucial indicator of competition and mining difficulty within the industry. So far this month, the Bitcoin network hashrate has grown by approximately 6%, adding to a substantial 45% increase over the past year. This trend indicates a robust interest in bitcoin mining, despite external pressures.
Challenges Facing Miners
Despite the growth in hashrate, the average bitcoin price has seen a slight decline since January, which has resulted in pressure on mining profitability. JPMorgan analysts observed a 13% drop in hashprice—an essential metric for daily mining profitability—attributed to the rising hashrate and falling bitcoin prices.
Daily Earnings and Market Performance
The bank estimates that bitcoin miners are currently earning around $53,600 in daily block rewards, reflecting a 6% decrease from January figures. Additionally, the total market capitalization of bitcoin mining stocks under JPMorgan’s coverage has decreased by 1% compared to the previous month.
Notable Performers in the Mining Space
In terms of individual company performance, IREN (IREN) led the pack in the first two weeks of February with a notable 27% increase in stock value. Conversely, Greenidge Generation (GREE) experienced a significant downturn, suffering a 20% decline in share price.
Increasing Influence of U.S. Mining Stocks
A separate report from broker Bernstein corroborated JPMorgan’s findings, indicating that U.S. bitcoin mining stocks are steadily increasing their share of the network hashrate. This trend highlights the strengthening position of American miners within the global bitcoin ecosystem.
Overall, the landscape for U.S.-listed bitcoin miners appears to be evolving rapidly, marked by impressive growth in hashrate and a changing market environment.
