U.S.-Listed Bitcoin Miners Reach Record Market Cap Amid Rising Hashrate Share and AI Ventures

U.S.-Listed Bitcoin Miners Reach Record Market Cap Amid Rising Hashrate Share and AI Ventures

**U.S.-Listed Bitcoin Miners Hit Record Market Cap Amid Rising Hashrate Share and AI Opportunities**

In a recent report, JPMorgan revealed that the combined market capitalization of 14 publicly traded Bitcoin mining companies in the United States reached a record high of $22.8 billion on June 15, 2024. This surge in valuation is attributed to several factors, including an uptick in network hashrate share and diversification into artificial intelligence (AI) data center ventures.

**Network Hashrate Share**

The report highlights that U.S.-listed miners have increased their share of the global network hashrate, which is a measure of the computational power dedicated to mining Bitcoin. As of June 15, these companies accounted for approximately 23.8% of the global hashrate, up from 22.9% in May and 21% in April.

This increase in hashrate share suggests that U.S. miners are becoming more competitive in the global Bitcoin mining landscape. It is also a positive sign that inefficient private mining operations may have scaled back their operations after the latest Bitcoin reward halving in April.

**Artificial Intelligence (AI) Ventures**

Another key factor driving the growth in market capitalization is the diversification of Bitcoin miners into AI data center ventures. Miners are exploring opportunities to contribute compute power for AI networks and development, leveraging their high-performance computing infrastructure.

One notable example is Core Scientific, which entered into a strategic partnership with AI cloud provider CoreWeave. This deal involved CoreWeave offering $1.6 billion to acquire Core Scientific, a bid that was ultimately declined. However, the partnership allows CoreWeave to utilize Core Scientific’s data centers for its AI services.

**Market Share**

JPMorgan analysts note that U.S. miners now trade at a multiple of 2.25x their proportional share of the block reward opportunity, which is higher than the post-January 2022 average of 1.5x. This suggests that investors are placing a premium on companies with a larger market share of the Bitcoin mining industry.


The report projects that U.S. miners will produce roughly 650,000 Bitcoin over the current four-year halving cycle. The analysts also expect the hash price, which is the price of Bitcoin per terahash of computing power, to increase in the coming weeks as the network hashrate declines.


The record market capitalization achieved by U.S.-listed Bitcoin miners underscores their growing importance in the global cryptocurrency ecosystem. Factors such as increased hashrate share, diversification into AI, and a favorable trading multiple are contributing to their continued growth and success. As the industry evolves, it will be interesting to observe how these miners navigate the competitive landscape and shape the future of Bitcoin mining.

By Deepika

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