Bybit
Bitcoin Mining Stocks Rise as Hashrate Falls in January
Bitcoin mining stocks started 2026 with strong gains, even as Bitcoin prices softened. According to a JPMorgan report, falling network competition and expanding interest in high-performance computing supported the sector.
The bank tracked 14 US-listed miners and data center operators. Their combined market capitalization reached $60 billion by the end of January. This marked a 23% monthly increase, significantly outperforming the S&P 500’s 1% gain.
The rally reflects a structural shift rather than a simple market rebound. Mining companies are increasingly repositioning themselves as digital infrastructure providers, targeting more stable revenue streams beyond Bitcoin.
Lower network hashrate boosts mining economics
January brought operational relief for miners due to extreme winter weather across the United States. Power curtailments forced many facilities offline, pushing the average Bitcoin network hashrate down 6% month over month to 981 EH/s.
At several points, hashrate briefly dropped below 700 EH/s. Mining difficulty declined 5% from December and remained about 10% below its November record high.
Lower competition improved miner efficiency. JPMorgan estimates that daily block reward revenue rose to approximately $42,350 per EH/s. Gross profit increased 24% to around $21,200 per EH/s as network conditions eased.
However, analysts caution that profitability remains well below pre-halving levels. Rising energy costs and compressed margins continue to weigh on long-term sustainability.
AI diversification reshapes miner valuations
Investor sentiment was further supported by growing exposure to AI infrastructure. JPMorgan highlights Riot Platforms’ high-performance computing agreement with AMD at its 700-megawatt Rockdale site as a key example.
Facing structural pressure after the 2024 halving, miners are repurposing power-dense facilities into AI-ready data centers. These contracts offer predictable cash flows compared to volatile Bitcoin rewards.
Still, valuations appear stretched. JPMorgan analysts estimate mining stocks were trading at roughly 150% of the four-year block reward opportunity at year-end. This is nearly three times the post-2022 average.
Even after January’s rally, the sector’s total valuation remains about 15% below October 2025 highs. This suggests cautious optimism, but also signals that investors remain selective.
