The total market capitalization of mining stocks monitored by JPMorgan rose by 33%, or approximately $8 billion, according to a recent report.
Bitcoin (BTC) mining profitability saw notable improvements in the first half of November, driven by an increase in hashprice, JPMorgan analysts Reginald Smith and Charles Pearce said in a research note on Monday.
Hashprice, which measures mining profitability, climbed 29% from the end of October. This rise occurred as bitcoin’s price rally outpaced the growth in network hashrate, with transaction fees making up a larger portion of block rewards.
The surge in bitcoin mining stocks reflected this increased profitability, as the total market cap of U.S.-listed miners tracked by the bank grew by $8 billion between Oct. 31 and Nov. 15. Analysts attribute the gains to bitcoin’s price rally and growing optimism in the crypto market following Donald Trump’s victory in the U.S. presidential election earlier this month.
Bitcoin, the largest cryptocurrency, surged by as much as 30%, reaching all-time highs in the wake of the election.
The report also noted that the network hashrate increased by 2% month-to-date, averaging 718 exahashes per second (EH/s). Hashrate is a key measure of the computational power deployed to mine and validate transactions on the bitcoin network, serving as a proxy for mining competition and difficulty.
JPMorgan said the 14 U.S.-listed miners within its coverage now control around 28% of the global network hashrate, maintaining their record-high market share.
For further context, mining revenue and profits had been in a downtrend for four consecutive months leading into November, highlighting the significance of this recent turnaround.
