US Bitcoin Miners’ Market Cap Surges to $22.8 Billion

Publicly traded Bitcoin mining companies in the US experienced a surge in their combined market capitalization, briefly reaching $22.8 billion on June 15. This increase was fueled by a rise in stock prices and an expanded share of the network hashrate.

Diversification into AI Data Centers

JP Morgan attributes part of this growth to diversification into artificial intelligence (AI) data center ventures. Marathon Digital, CleanSpark, and Riot Platforms are the leading US-listed Bitcoin miners, with market caps of $5.3 billion, $4 billion, and $3 billion, respectively.

Stock Price Surge

In the first half of June, stock prices for fourteen US-listed mining companies surged. Core Scientific, TeraWulf, and Iris Energy led the gains, with stock increases of 117%, 80%, and 70%, respectively. Argo Blockchain was the only miner to experience a decline, with its share price falling 7%.

Core Scientific and CoreWeave Partnership

A proposed acquisition and strategic partnership between Core Scientific and AI cloud provider CoreWeave significantly influenced the miners’ collective market cap growth. Although the acquisition offer was declined, the partnership allows CoreWeave to use Core Scientific’s data centers for AI services.

Rising Network Hashrate Share

JP Morgan analysts noted an increase in the market share of Bitcoin’s hash rate among US Bitcoin miners since the April halving, rising from 21% in April to 23.8% in June. This increase occurred despite a 5% decline in the overall network hashrate.

Hash Price Expected to Increase

Analysts project that US miners will produce about 650,000 Bitcoin over this four-year halving cycle. With a hash price currently 15% below bear market lows and 45% below pre-halving levels, analysts expect an increase in hash price in the coming weeks as the network hashrate declines.

Conclusion

The US Bitcoin mining industry has experienced substantial growth, driven by an increasing network hashrate share and diversification into AI data center ventures. As the industry continues to evolve, analysts anticipate a rise in hash price, suggesting that the current market conditions are likely to change.

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