U.S.-Listed Bitcoin Miners' Share of Network Hashrate Hit Record High in June: JPMorgan

JPMorgan reports that the combined hashrate of 13 U.S.-listed Bitcoin miners it tracks reached a record high in June, now accounting for 31.5% of the global network, driven by capacity additions from CleanSpark, Hive Technologies, and Riot Platforms. This group's hashrate increased 99% year-over-year, outpacing the network's 55% increase, while the hash price decreased by 2% since the end of May. Despite this, the total market cap of these miners rose by 10%, or $2.4 billion, in the first two weeks of June, with Riot outperforming and Bitfarms underperforming.

Analysis

U.S.-listed Bitcoin miners are significantly expanding their global footprint, with 13 such entities tracked by JPMorgan reaching a record 31.5% share of the network hashrate in June. This represents a substantial 99% year-over-year increase in their combined hashrate, far outpacing the global network's 55% year-over-year growth. Leading this expansion, companies including CleanSpark (CLSK), Hive Technologies (HIVE), and Riot Platforms (RIOT) collectively added 11 exahashes per second (EH/s) of capacity since April. Despite this operational growth and a 10% ($2.4 billion) rise in the aggregate market capitalization of these miners in the first two weeks of June, the hash price, a critical indicator of mining profitability, experienced a 2% decline since the end of May. The overall network hashrate also saw a 'somewhat surprising' 10 EH/s dip in early June to an average of 890 EH/s, although it remains up over 50% year-on-year. Individual stock performance varied, with Riot Platforms (RIOT) surging 20% while Bitfarms (BITF) declined 9% during the same period, underscoring differentiated market responses to operational achievements and market conditions.

Key Decisions for Investors

• Investors should note the increasing market share concentration among U.S.-listed Bitcoin miners, potentially favoring companies like Riot Platforms, CleanSpark, and Hive Technologies that are driving hashrate growth.
• Closely monitor the declining hash price, as this trend could compress profit margins for miners despite increased operational scale, warranting scrutiny of individual company cost structures and efficiency.
• Given the divergence in stock performance, such as Riot's 20% gain versus Bitfarms' 9% decline, a selective investment strategy is crucial, focusing on miners demonstrating superior execution and resilience to profitability pressures.