US Public Bitcoin Miners Briefly Reach $22.8B Combined Market Cap Amid Stock Surge

According to a recent analysis by JP Morgan, the growth is driven by an increase in network hashrate share and diversification into artificial intelligence (AI) data center ventures.

Publicly traded Bitcoin mining companies in the United States briefly reached a combined market cap of $22.8 billion on June 15 amid a surge in their stock price during June that was largely driven by an increase in network hashrate share and diversification into artificial intelligence (AI) data center ventures.

As of June 15, Marathon Digital (NASDAQ:MARA) was the largest US-listed Bitcoin miner with a market cap of $5.3 billion, followed by CleanSpark (NASDAQ:CLSK) at $4 billion and Riot Platforms (NASDAQ:RIOT) at $3 billion.

The first half of June saw a notable surge in the stock prices of 14 US-listed mining companies with Core Scientific (NASDAQ:CORZ), TeraWulf (NASDAQ:WULF), and Iris Energy (NASDAQ:IREN) leading the pack. Shares of Core Scientific, TeraWulf, and Iris Energy are up 117%, 80%, and 70%, respectively, since June 1. Argo Blockchain (NASDAQ:ARBK) was the only listed Bitcoin miner that saw a decline in its share price, which was down 7% over the first half of June.

A proposed acquisition and strategic partnership between Core Scientific and AI cloud provider CoreWeave was a significant catalyst for the growth in the collective miner market cap. Earlier this month, CoreWeave offered $1.6 billion to acquire Core Scientific, a bid that was around 55% higher than Core Scientific's market price at the time.

The offer came after a previously announced $3.5 billion, 12-year partnership that would allow CoreWeave to utilize Core Scientific’s data centers for its AI services. Several other Bitcoin miners are also exploring similar diversification strategies that would allow them to contribute compute power for AI networks and development.

Another factor in the market cap increase was the rising share of network hashrate among US Bitcoin miners, JP Morgan analysts said. According to the firm’s analysis, US miners have gained a larger market share of Bitcoin’s hash rate since the April halving.

Despite a 5% decline in the overall network hashrate since the halving, the share of US-listed miners rose to 23.8% from 22.9% in May and 21% in April as less efficient operations exited the market.

The analysts also compared companies’ trading value to their proportional share of the block reward opportunity, noting that firms now trade at “2.25x their proportional share — lower than February’s high of 2.4x but higher than the post-January 2022 average of 1.5x.”

The report projected that US miners will produce roughly 650,000 Bitcoin over this four-year halving cycle. The analysts also highlighted that Bitcoin has a low hash price that is 15% below the bear market lows of December 2022 and 45% below pre-halving levels.

“These levels are not sustainable,” the analysts noted, adding that “all else equal, we expect hashprice to increase in the coming weeks as the network hashrate declines.”

News source：https://www.kdj.com/cryptocurrencies-news/articles/public-bitcoin-miners-reach-b-combined-market-cap-stock-surge.html

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