Bitcoin Miners Reach Record Market Cap Amid Industry Consolidation

  • Sergey Maga
  • 18 June, 2024 02:18
Bitcoin Miners Reach Record Market Cap Amid Industry Consolidation

The total market cap of U.S.-listed Bitcoin mining stocks hit a record high of $22.8 billion in June, according to a report by JPMorgan. The report noted that nearly all the 14 companies tracked by the bank outperformed Bitcoin in the first half of the month. Core Scientific was the top performer, with its stock soaring 117%, while Argo Blockchain saw a 7% decline. During this period, Bitcoin itself fell by 3%, according to Coindesk.

The surge in mining stocks is attributed to positive investor reactions to Core Scientific’s deal with AI firm CoreWeave. Additionally, the overall network hashrate, a measure of industry competition and mining difficulty, has declined by approximately 1% since May. This decrease in hashrate indicates that inefficient private operators have scaled back their operations following April’s reward halving.

U.S.-listed miners have increased their share of the global network hashrate for the second consecutive month, now accounting for 23.8% of the total. This growth reflects a 1% gain from the previous month, suggesting a trend towards greater dominance by publicly traded companies in the Bitcoin mining sector.

The positive performance of mining stocks despite a slight drop in Bitcoin’s price highlights the market’s confidence in the industry’s long-term potential. Investors are closely watching developments in the sector, especially as regulatory scrutiny and technological advancements continue to shape the landscape.

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