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HomeNewsBitcoin Miners' Market Cap Hits Record High as Stocks Surge

Bitcoin Miners’ Market Cap Hits Record High as Stocks Surge

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The total market capitalization of the 14 U.S.-listed Bitcoin (BTC) miners followed by JPMorgan reached a record high of $22.8 billion on June 15, according to a research report released by the Wall Street bank on Monday.

The report noted that almost all the companies outperformed Bitcoin in the first two weeks of June, with Core Scientific (CORZ) emerging as the best performer, with a staggering 117% gain. Argo Blockchain (ARBK), on the other hand, was the worst performer, dropping 7%. Bitcoin itself fell 3% during the same period.

The surge in mining stocks can be attributed to the positive reaction from investors to Core Scientific’s deal with artificial intelligence firm CoreWeave. The news boosted investor confidence, leading to a rally in the mining sector.

The report also highlighted the decline in mining difficulty since April’s reward halving. The network hashrate, a proxy for industry competition and mining difficulty, declined by 1% since May. However, U.S.-listed miners have increased their share of the network hashrate, with the combined market share of the 14 companies now accounting for 23.8% of the global network hashrate, a gain of almost 1% from the previous month.

This marks the second consecutive month of network hashrate gains for U.S. miners, indicating that “inefficient private operators scaled back operations post-halving.” The trend suggests that U.S. miners are gaining ground on their global counterparts, a development that could have significant implications for the cryptocurrency market.

The record high market capitalization of the 14 U.S.-listed Bitcoin miners is a testament to the growing importance of the mining sector in the cryptocurrency ecosystem. As the industry continues to evolve, investors will be closely watching the performance of these companies to gauge the direction of the market.

Source: Coindesk

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