Bitcoin Miners Listed in the U.S. Achieve Record Global Hashrate Share in July, Reports Show

Bitcoin miners experienced a notable surge in performance during the initial fortnight of the current month, with both pure-play and high-performance computing (HPC) miners making significant gains, as outlined in a research report by JPMorgan on Tuesday.

According to JPMorgan analysts Reginald Smith and Charles Pearce, the share of the global hashrate held by U.S.-listed miners reached a record 26.6%, marking a substantial increase of 2.4% since the conclusion of June and 5.6% since the bitcoin halving event.

Hashrate, which denotes the collective computational power employed for mining and processing transactions on a proof-of-work blockchain, serves as an indicator of industry competition and mining complexity.

The total market capitalization of the 14 U.S.-listed bitcoin miners tracked by the bank surged by 29% since the end of June, now trading at a level that is “2.6 times their proportional share of the four-year block reward, the highest level on record,” the analysts elaborated.

This upward trend suggests that the market perceives the potential for artificial intelligence and HPC applications to offer alternative and more lucrative use cases for bitcoin mining operations, the report highlighted.

While the network hashrate saw a modest 1% increase since June, it remains approximately 60 exahashes per second (EH/s) below pre-halving levels, the bank observed.

In June, miners listed in the U.S. collectively added 17 EH/s of capacity, reaching an all-time high level. Notable gains were led by Riot Platforms (RIOT), Bitfarms (BITF), and CleanSpark (CLSK).

The bank further noted that with the exception of Stronghold Digital (SDIG), which experienced an 8% decline, every miner outperformed bitcoin during this period. Cipher Mining (CIFR) led the gainers with a 44% increase.

Broker Bernstein also expressed optimism regarding the AI/HPC potential in a recent report, citing AI-related deals such as Core Scientific’s (CORZ) agreement with CoreWeave and Coatue Management’s $150 million investment in HUT 8 (HUT) as significant catalysts for the sector.

In conclusion, the performance of U.S.-listed bitcoin miners, the evolving landscape of AI and HPC applications in mining operations, and the ongoing market dynamics underscore the growing significance and potential of the cryptocurrency mining sector.