How Bitcoin Mining Stocks Are Navigating Market Volatility in 2023
U.S. Bitcoin Mining Stocks – The blended hashrate of the fourteen U.S.-listed bitcoin (BTC) mining stocks tracked by JPMorgan has reached a record 28.9% of the network hashrate, according to a research report published on Wednesday. This marks a significant achievement for these miners amid increasing competition and market dynamics.
Surge in Mining Efficiency
JPMorgan analysts Reginald Smith and Charles Pearce noted that the combined hashrate of these 14 miners has surged approximately 70% year-to-date, now standing at 194 EH/s (exahashes per second). This increase outpaces the 33% rise in the overall network hashrate, underscoring the efficiency and financial advantages some publicly listed miners possess.
Recent Hashrate Growth
The network hashrate has grown by 4% this month, averaging 672 EH/s. This uptick reflects the total computational power employed in mining and processing transactions on a proof-of-work blockchain. However, the hashprice, a key indicator of daily mining profitability, has seen only a minor increase of less than 1% since the end of September.
Market Capitalization Trends
The total market capitalization of the miners covered by JPMorgan has increased by 7% since the end of September, now trading at 1.9 times their share of the four-year block reward. This is the lowest valuation level since May and could represent a potential “attractive entry point” for investors as the market approaches election season.
Recent Performance of Mining Stocks
Mining stocks experienced a rally in the first two weeks of October as Bitcoin prices rose. Companies with exposure to high-performance computing (HPC) continued to attract interest from hyperscalers. Greenidge Generation (GREE) emerged as the standout performer with a 29% gain, while Stronghold (SDIG) underperformed the sector, experiencing a 17% decline.
Warning from Jefferies
However, rival Wall Street bank Jefferies has issued a cautionary note, suggesting that October may pose challenges for miners, highlighting the inherent volatility in the market.
FAQ: Bitcoin Mining Stocks and Hashrate
What is hashrate?
Hashrate refers to the total computational power used by miners to process transactions and secure the blockchain. It is typically measured in hashes per second (H/s).
How much of the global hashrate do U.S.-listed bitcoin mining stocks account for?
As of the latest report from JPMorgan, U.S.-listed bitcoin mining stocks account for a record 28.9% of the global network hashrate.
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