JPMorgan: BTC mining profitability has overtaken hashrate in terms of growth rate since the beginning of the month

What’s new? The total market capitalization of mining stocks rose by 33% or $8 billion from October 31 to November 15 due to bitcoin’s rise and optimism among participants in the broader crypto market following the US election, analysts at JPMorgan Bank write. They added that hash prices, a measure of the profitability of mining, rose by 29% over the period, outpacing the growth of Bitcoin’s blockchain hashrate. In addition, the share of transaction fees as a percentage of total block mining rewards increased.

Material by CoinDesk

What else is known? After the victory of Donald Trump in the presidential election on November 5, the bitcoin rate rose by more than 30% and set a new historical maximum of $92 500. In turn, the hashrate of the bitcoin blockchain has only increased by 2% since the beginning of the month and reached 718 EH/s.

The indicator reflects the total computing power used to process transactions and may also indirectly reflect the level of competition in the industry.

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The crypto market reacted positively to Trump’s victory, as the latter repeatedly spoke in favor of digital assets during the election campaign. The politician stated the need to turn the United States into a global blockchain technology center, as well as to create a national bitcoin reserve.

He also promised to support local miners and said that the remaining bitcoins should be mined in the US. After Trump’s meeting with representatives of mining companies, their stocks outpaced bitcoin in terms of returns.

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So far, 19 784 465 coins have been mined out of a programmatically limited supply of 21 million. Analysts estimate that the last coin will be mined around 2140.

The slowdown in the rate of issuance has been aided by a programmed halving mechanism. Halving occurs every four years since the asset’s launch and halves the reward to miners for mining blocks. The fourth halving took place in April 2024, reducing the reward excluding fees to 3,125 BTC.

The 14 miners, whose shares are traded on US exchanges, currently account for about 28% of the global network and their share of the hashrate remains at a record high, JPMorgan emphasizes.

Despite the impressive results from the beginning of the month, on November 19, the shares of most of the largest miners show a daily decline. Thus, the most serious fall is noted at the largest miner Marathon Digital (MARA) with a capitalization of $6,78 billion: its shares have lost more than 14% over the day and are trading at $18,1. The fall since the beginning of the year amounted to 32%.

At that, the fall may be connected with the initiative announced a day earlier. Thus, Marathon announced the placement of convertible bonds for $700 million. Most of the profits from the sale of securities will be used to buy bitcoins.

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Earlier, it became known that miners transferred to exchanges more than 45 000 bitcoins worth more than $4 billion after the rate of the asset on November 12 crossed the $90 000 mark.