US-Listed Bitcoin Miners Reach Record 29% Of Network Hashrate In October: JPMorgan

According to a recent report by JPMorgan, publicly traded Bitcoin mining companies in the U.S. now account for a record 28.9% of the global Bitcoin network’s total hashrate. This surge emphasizes the growing dominance and efficiency of publicly listed mining firms, positioning them as potentially lucrative investment opportunities.

The combined hashrate of fourteen U.S.-listed Bitcoin mining companies tracked by JPMorgan has increased by approximately 70% year-to-date, reaching 194 EH/s. This figure significantly outpaces the overall Bitcoin network’s 33% increase in hashrate.

“The combined hashrate of the 14 U.S.-listed miners we track has increased by approximately 70% YTD to 194 EH/s, now representing roughly 28.9% of the global network hashrate,” analysts Reginald Smith and Charles Pierce noted. This marks an 8% rise from earlier in the year, reflecting the efficiency and financial strength of publicly traded miners.

Network and Mining Profitability Rise

JPMorgan reported that the network’s hashrate rose by 4% this month to an average of 672 EH/s. The hashrate measures the total computing power used for Bitcoin mining and transaction processing. Although daily mining profitability rose by less than 1% since late September, the market capitalization of the miners tracked by the bank increased by 7% since then.

The report suggests that mining stocks could present an attractive trading opportunity ahead of the upcoming U.S. election. These stocks currently trade at around 1.9 times their share of the four-year block reward, the lowest ratio since May.

Performance of Mining Stocks

October has seen mixed performance in Bitcoin mining stocks. Greenidge Generation (GREE) led the sector with a 29% rise, while Stronghold (SDIG) experienced a 17% drop. Interest in high-performance computing (HPC) companies has also increased as Bitcoin price has rebounded.

However, rival investment bank Jefferies warned in a recent report that October could be challenging for some mining companies due to potential market volatility and rising energy costs.

Conclusion: Opportunities in Bitcoin Mining

The significant growth and increased efficiency of U.S.-listed Bitcoin miners present unique opportunities for investors. With mining stocks trading at attractive multiples and potential gains anticipated ahead of the U.S. election, JPMorgan suggests this might be a good time for investors to explore opportunities in the sector. As the Bitcoin network continues to grow, publicly traded miners are positioning themselves as key players in this space.