Bitcoin
US-Listed Bitcoin Miners Hit Record $22.8 Billion Market Cap Amid Stock Surge
Publicly traded Bitcoin Mining companies in the US briefly reached a combined market capitalization of $22.8 billion on June 15, amid a surge in their share prices during the month of June.
According to a recent analysis of JP MorganThe growth is driven by an increase in the network’s hash rate share and diversification into artificial intelligence (AI) data center ventures.
As of June 15, Marathon Digital was the largest US-listed Bitcoin miner, boasting a market cap of $5.3 billion. CleanSpark was next with $4 billion, followed by Riot Platforms with $3 billion.
Inventory increase
The first half of June saw a notable increase in the share prices of 14 US-listed companies from Minas Gerais, including Core Scientific (CORZ), TeraWulf (WULF) and Iris Energy (IRENE) leading the group. Shares of the three companies have risen 117%, 80% and 70%, respectively, since June 1.
Blockchain Argo (ARBK) was the only listed Bitcoin mining company that saw a drop in its share price, which was down 7% compared to the first half of June.
Meanwhile, a proposed acquisition and strategic partnership between Core Scientific and AI cloud provider CoreWeave was a significant catalyst for the mining company’s collective market capitalization growth.
Earlier this month, CoreWeave offered $1.6 billion to acquire Core Scientific, an offer representing a 55% premium over its market price, but the offer was declined. The proposal followed a US$3.5 billion, 12-year partnership which allows CoreWeave to utilize Core Scientific data centers for its AI services.
Other Bitcoin miners are exploring similar diversification strategies that would allow them to contribute computing power to networks and AI development.
market share
JP Morgan analysts said another factor in the market cap increase is the growing share of the network’s hashrate among US Bitcoin miners. found that US miners have gained a larger share of the Bitcoin hash rate market since the April halving.
Despite a 5% decline in the network’s overall hashrate since the halving, the share of US-listed miners has increased to 23.8% from 22.9% in May and 21% in April as less efficient operations exit from the market.
JP Morgan analysts also compared companies’ trading value to their proportional share of the block reward opportunity, noting that companies now trade at “2.25x their proportional share – lower than the February high of 2.4x, but higher to the post-January 2022 average of 1.5”. x.”
The report projected that US miners will produce around 650,000 Bitcoins over 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 noted that these levels are not sustainable, stating:
“All else equal, we expect the hash price to increase in the coming weeks as the network hashrate decreases.”