The total market capitalization of the 14 U.S.-listed bitcoin mining companies tracked by JPMorgan reached a new high in June, standing at $22.8 billion, according to a recent report. This milestone was achieved on June 15, as highlighted in the Wall Street bank’s research.
During the first two weeks of June, the majority of these mining stocks outperformed bitcoin itself. Specifically, Core Scientific (CORZ) saw the most significant growth, with a 117% increase, while Argo Blockchain (ARBK) experienced a decline of 7%. In contrast, bitcoin’s value dropped by 3% over the same period.
Investor sentiment towards bitcoin mining stocks was largely positive in the first half of June, following the news of Core Scientific’s partnership with AI company CoreWeave. This development contributed to the uptrend in the market.
Additionally, mining difficulty has been on a downward trend since the reward halving that occurred in April. Analysts Reginald Smith and Charles Pearce noted that the network hashrate, which reflects industry competition and mining difficulty, decreased by approximately 7 EH/s (1%) compared to May.
Furthermore, U.S.-listed miners have been increasing their share of the global network hashrate. The combined market share of the 14 companies now represents around 23.8% of the total network hashrate, marking a nearly 1% increase from the previous month. This growth in market share for U.S. miners is a positive indication, signaling that less efficient private operators may have scaled back their operations post-halving.
The report emphasized that this marks the second consecutive month of network hashrate gains for U.S. miners. This shift in the distribution of mining power highlights a potential consolidation within the industry, with more efficient and competitive players taking a larger share of the network hashrate.
In conclusion, the performance of U.S.-listed bitcoin mining stocks in June displayed strength and resilience, outpacing the price movement of bitcoin itself. The positive developments in the market, such as strategic partnerships and network hashrate gains, indicate a growing maturity and efficiency within the sector. Investors and industry observers will be closely monitoring these trends to assess the long-term prospects of the bitcoin mining industry.