Key Points
- Bitcoin mining companies started 2025 strongly, outperforming Bitcoin itself, according to JPMorgan’s research.
- The total market capitalization of 14 US-listed miners rose by 16%, or $4.5 billion, in the first two weeks of 2025.
Bitcoin mining firms kicked off 2025 with a robust performance, with 12 out of 14 stocks monitored by JPMorgan outdoing the cryptocurrency itself in the year’s initial fortnight. JPMorgan’s research indicates a buoyant mining sector, with performance metrics showing promising growth.
The global network hashrate, an essential measure of mining computational power, increased by 2% month-to-date, averaging 793 exahashes per second (EH/s). This represents a 51% rise from January 2024, indicating heightened competition and increased mining difficulty. Despite these challenges, miners managed to maintain a nearly stable hashprice, with a slight dip of less than 1% since December.
US Miners See Significant Gains
Market performance has also been strong, with the total market capitalization of the 14 US-listed miners monitored by JPMorgan increasing by 16%, or $4.5 billion, in the first two weeks of 2025. Riot Platforms (NASDAQ: RIOT) and Bit Origin Ltd (NASDAQ: BTOG) were among the standout performers, with the former posting a 32% gain and the latter experiencing a 30% decline.
Other notable performers included Cathedra Bitcoin (TSXV: CBIT) with a 25% year-to-date surge, and Bit Digital Inc (NASDAQ: BTBT) and Digihost Technology Inc (NASDAQ: DGHI) with gains of 23.90% and 23.33% respectively. CleanSpark Inc (NASDAQ: CLSK) also recorded 21.38% year-to-date gains.
Despite some miners experiencing setbacks, the broader sector remains on an upward trajectory. The combined market capitalization of 31 publicly traded Bitcoin mining companies currently stands at $44.09 billion, with 26 of these firms witnessing positive stock movement against the US dollar.
Bitcoin’s Year-on-Year Growth Fuels Optimism
Bitcoin has continued its steady climb, recording a 61% increase since the April 2024 halving event, a 51% rise since the US presidential election in November, and a remarkable 144% growth year-on-year. These trends reflect a vibrant ecosystem where both miners and investors are reaping rewards.
Publicly listed miners have also shown significant strategic planning, collectively holding record reserves of over 92,473 BTC as of December 2024, according to TheMinerMag. Some firms are also branching into high-performance computing and artificial intelligence hosting, indicating a trend towards diversification to strengthen long-term revenue streams.
Despite an overall positive outlook, miners face challenges related to Bitcoin’s price remaining below the highly anticipated $100,000 threshold. However, their upward stock momentum indicates confidence in the industry’s resilience. For instance, Core Scientific (Nasdaq: CORZ) experienced only a marginal decline of 0.06%, with an estimated revenue of $97,790,600.
