JPMorgan Identifies US Bitcoin Mining Stocks with Outperformance Trend

UTC by Godfrey Benjamin · 3 min read
JPMorgan Identifies US Bitcoin Mining Stocks with Outperformance Trend
Photo: Depositphotos

Collectively, the 14 US mining companies have a network hash rate of approximately 23.8% of the total market share. 

In the latest report, financial service provider JPMorgan Chase & Co (NYSE: JPM) noted that the total market capitalization of 14 United States Bitcoin (BTC) mining stocks that it tracks hit a record high in mid-June. On June 15, the market cap data stood at $22.8 billion, per the Wall Street bank. From the list, almost all the companies performed better than Bitcoin in the first two weeks of this month.

Core Scientific AI Expansion Causes Bitcoin Mining Stocks to Outperform Bitcoin

It is worth noting that mining stocks’ performance came on the heels of Core Scientific’s Artificial Intelligence (AI) deal with AI hyperscaler CoreWeave. Core Scientific is keen on expanding its 12-year contract with the former, a move that is expected to bring in an average annual revenue of $290 million and accrue to over $3.5 billion over the contract period.

As part of the agreement, Core Scientific will provide around 200 megawatts (MW) of infrastructure to support CoreWeave’s high-performance computing (HPC) operations. Quite a number of investors reacted positively to the news of the AI expansion, triggering Bitcoin mining stocks to record gains.

Core Scientific Inc (NASDAQ: CORZ) was the best performer, adding 117%. Argo Blockchain (ARBK) came off as the worst performer but only dropped by 7%. Within this same period, the world’s premier cryptocurrency fell by 3%. At the time of this writing, Bitcoin had seen a further 1.02% dip in 24 hours and was trading at $65,770.65.

Also, mining difficulty continued with its fall which came after the 2024 halving event. According to analysts Reginald Smith and Charles Pearce, “the network hash rate, a proxy for industry competition and mining difficulty, declined ~7 EH/s (1%) since May.”

Collectively, the 14 US mining companies have a network hash rate of approximately 23.8% of the total market share.

This figure marks a 1% surge from the level recorded in May. JPMorgan noted that the increased level seen in the first two weeks of June is an indication of a silver lining saying “inefficient private operators scaled back operations post-halving”.

Donald Trump Triggers Market Boost

Over the past week, it was highlighted that the public announcement of Republican Presidential candidate Donald Trump’s support for Bitcoin miners contributed to the jump in the firm’s stocks. Trump stated that he wants all the remaining Bitcoin production to happen in the United States. Furthermore, he emphasized the contribution of Bitcoin miners to make the US energy dominant.

Consequently, TeraWulf Inc (NASDAQ: WULF) and Hut 8 Mining (NASDAQ: HUT) emerged as the top performers among the ten largest Bitcoin miners by market capitalization on June 12. TeraWulf registered an increase of 10.5%, Hut 8 Mining rose by 10.07%, Core Scientific by 9.87%, Iris Energy by 9.72% and Cipher Mining jumped by 94% at the time.

Meanwhile, Core Scientific’s deal with CoreWeave is another stable, recurring, and high-margin revenue stream for the former.

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