US miners’ shares have outperformed bitcoin in terms of profitability since the beginning of June

The best result was demonstrated by securities of Core Scientific

17.06.2024 - 13:50

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What’s new? The total capitalization of mining companies whose shares are listed on US exchanges reached a record $22,8 billion. In the first half of June, the securities of companies in the field of bitcoin mining by profitability surpassed the very first cryptocurrency.

Material by CoinDesk

What else is known? The achievement of record capitalization was recorded in JPMorgan, a total of 14 US miners are tracked by the bank’s analysts. They noted that the stock began to outperform bitcoin in terms of returns after the news of cooperation between Core Scientific and CoreWeave.

On June 3, for example, miner Core Scientific signed a 12-year, $3,5 billion contract with AI startup CoreWeave to lease its computing power. As a result, Core Scientific (CORZ) securities returned 117% in two weeks, the best performance in the industry. Over the same period, the value of BTC fell 3%.

Among the industry leaders, CleanSpark’s CLSK (8%), Riot Platforms’ RIOT (6,7%), Cipher Mining’s CIFR (34,5%), TeraWulf’s WULF (91,2%), and Stronghold Digital’s SDIG (34,5%) also showed growth during this time.

The largest-capitalization miner Marathon Digital (MARA) lost 5%, while Argo Blockchain (ARBK) also saw a 7% drop.

At the end of last week, shares of leading US miners also jumped by an average of 8% per day. This happened after Donald Trump met with representatives of these companies and promised to support the industry if re-elected as president.

JPMorgan also noted that US-listed miners have grown their share of the global bitcoin hashrate to 23,8%. The growth compared to the previous month amounted to almost 1%. According to analysts, this situation indicates the departure of inefficient mining participants from the market after the April 20 halving.

As a result of the fourth halving in the bitcoin network, the reward for mining a block was again cut in half, to 3,125 coins. As a result, miners with inefficient equipment cannot earn enough to cover their costs.

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