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US-listed Bitcoin miners reached a new milestone in June, reaching a collective market value of $22.8 billion. This record appreciation is attributed to the increase in hash rate participation and the diversification of data centers with a focus on artificial intelligence (AI).

JPMorgan analysts Reginald Smith and Charles Pearce highlighted this growth in a recent report to clients. In the document, they detailed the factors that drove this rise in the Bitcoin mining market.

In early June, U.S. Bitcoin mining stocks rose considerably, driven by companies like Core Scientific, TeraWulf, and IREN, which posted gains of 117%, 80%, and 70%, respectively. This growth reflects investors’ positive response to new opportunities and a changing market environment.

Marathon Digital leads as the largest US-listed Bitcoin miner with a market cap of $5.3 billion. Next comes CleanSpark with $4 billion and Riot Platforms with $3 billion. The sector’s aggregate market value has increased by 24%, about US$4.4 billion, since the end of May. This indicates renewed confidence in the Bitcoin mining market.

Bitcoin Mining Companies Perform Well

One of the main events that influenced this valuation was the offer to acquire Core Scientific by CoreWeave, an AI cloud provider. The offer, worth US$1.6 billion, represented a 55% premium above Core Scientific’s market price, although it was rejected.

Despite this, the two companies entered into a 12-year, $3.5 billion partnership agreement for CoreWeave to host its AI services in Core Scientific’s data centers.

Additionally, other mining companies such as Hut 8 and IREN have also pursued similar diversification. These initiatives aim to mitigate the impacts of the Bitcoin halving in April, which decreased miners’ block subsidy rewards by 50%, reducing the new daily supply of BTC from 900 to 450.

Another significant factor in the increase in the market value of US Bitcoin miners is the growth of their share of the network’s hashrate. Following Bitcoin’s halving, the network’s hashrate fell by around 5%, with the seven-day moving average falling from 629.44 EH/s to 598.08 EH/s.

Despite this, US miners’ share of the network’s hashrate increased to 23.8%, compared to 22.9% in May and 21% in April.

JPMorgan analysts estimate that US-listed miners, which represent approximately 24% of the network’s hashrate, are trading at about 2.25 times their proportional share of the four-year block reward opportunity. This is the highest point since February 2024, when the ratio was 2.4 times.

Next steps

While Bitcoin’s hash price – a measure of how much a miner can expect to earn from a specific amount of hash rate – is about 15% below the December 2022 bear market lows and 45% below pre-halving levels , JPMorgan analysts predict a recovery.

They suggest that the hash price is expected to increase in the coming weeks. This is because the network’s hashrate is expected to decrease and competition between miners intensifies.

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