The total market capitalization of the 14 U.S.-listed Bitcoin miners reached an all-time high of $22.8 billion on June 15, according to a recent research report by JPMorgan. Despite a 3% decline in the price of Bitcoin, U.S.-listed miners saw positive growth in the first half of June, with Core Scientific leading the pack with a 117% increase in value due to its partnership with artificial intelligence firm CoreWeave. Argo Blockchain, however, experienced a small drop of 7%.
Following the reward halving event in April, there has been a decline in mining difficulty and network hashrate, indicating a decrease in industry competition. U.S.-listed miners have been gaining a larger share of the network hashrate, now representing around 23.8% of the global network hashrate, marking a gain of almost 1% compared to the previous month. This trend suggests that inefficient private operators have scaled back operations after the halving event, according to JPMorgan analysts Reginald Smith and Charles Pearce.
While CleanSpark and TeraWulf have been among the best-performing stocks in 2024, with year-to-date gains of 58.55% and 66.96% respectively, Marathon Digital and Riot Platforms have experienced declines of 11.43% and nearly 31%, respectively. Last week, Bitcoin mining stocks experienced significant gains following a promise by United States presidential candidate Donald Trump to boost mining operations within the country. Trump’s statement came after a meeting with top executives from the Bitcoin industry, where he assured them of his support if he were to be elected as president in November.
In conclusion, the positive market performance of U.S.-listed Bitcoin mining stocks in the first half of June can be attributed to factors such as the decline in mining difficulty after the reward halving event, the increasing share of network hashrate held by U.S. miners, and specific partnerships and endorsements, such as the one between Core Scientific and CoreWeave. Despite fluctuations in individual stock prices, the overall outlook for Bitcoin mining stocks remains favorable, especially with potential government support and growing investor interest in the industry. It will be interesting to see how these trends continue to develop in the coming months and how they impact the broader cryptocurrency market.
If you are looking to invest in Bitcoin mining stocks, it is important to conduct thorough research, consider factors such as market trends, partnerships, and government support, and consult with financial experts. With the evolving landscape of the cryptocurrency industry, staying informed and making informed decisions will be crucial for maximizing potential returns on investments in Bitcoin mining stocks. Remember to diversify your portfolio and consider both short-term and long-term investment strategies to achieve your financial goals in the ever-changing world of cryptocurrencies.