Markets
US-listed Bitcoin miners hit record market capitalization of $22.8 billion amid surging stocks
Publicly negotiated Bitcoin Mining companies in the United States briefly reached a combined market capitalization of $22.8 billion on June 15 amid a surge in their stock prices in June.
According to a recent analysis by JP Morgangrowth is driven by an increase in network hashrate share and diversification into artificial intelligence (AI) data center initiatives.
As of June 15, Marathon Digital was the largest U.S.-listed Bitcoin miner, boasting a market capitalization of $5.3 billion. CleanSpark follows with $4 billion, followed by Riot Platforms with $3 billion.
Increase in shares
The first half of June saw a notable increase in stock prices of 14 US-listed mining companies, with Core Scientific (CORZ), TeraWulf (WULF) and Iris Energy (IREN) at the head of the group. Shares of the three companies have risen 117%, 80% and 70% respectively since June 1.
Argo Blockchain (ARBK) was the only listed Bitcoin miner that saw a decline in its share price, which fell 7% compared to the first half of June.
Meanwhile, a proposed acquisition and strategic partnership between Core Scientific and AI cloud provider CoreWeave has been a significant catalyst for the growth of miners’ collective market capitalization.
Earlier this month, CoreWeave offered $1.6 billion to acquire Core Scientific, an offer representing a 55% premium to the market price, but the offer was rejected. The proposal followed $3.5 billion, 12-year partnership which allows CoreWeave to use Core Scientific data centers for its AI services.
Other Bitcoin miners are exploring similar diversification strategies that would allow them to contribute computing power for networks and artificial intelligence development.
Market share
JP Morgan analysts said another factor in the rising market capitalization is the growing share of network hashrate among US Bitcoin miners. found that US miners have gained a larger market share of Bitcoin’s hash rate since the April halving.
Despite a 5% drop in overall network hashrate after the halving, the share of US-listed miners rose to 23.8% from 22.9% in May and 21% in April, as fewer operations efficient ones have left the market.
Analysts at J.P. Morgan also compared the companies’ trading value to their pro rata share of the block reward opportunity, finding that the companies now trade at “2.25x their pro rata share – lower than the high of 2.4x February but above the post-January 2022 average of 1.5″. X.”
The report predicts that US miners will produce around 650,000 Bitcoin during this four-year halving cycle.
Analysts also noted that Bitcoin has a low hash price, 15% below the December 2022 bear market lows and 45% below pre-halving levels. Analysts have noted that these levels are not sustainable, stating:
“All things being equal, we expect the hashprice to increase in the coming weeks as the network hashrate decreases.”