Mike Smith
November 20
The American bank JPMorgan Chase presented a new analytical report on the state of the mining industry. According to the data, the capitalization of 14 public companies operating in this segment has grown to $ 8 billion, which is 33% more than at the end of October 2024. Such indicators are associated with the Bitcoin rally and the growth of optimism regarding crypto assets after the presidential elections in the US.
The share of these companies in the global hashrate reached 28%. In October, it set a historical maximum of 28.9%, but since the beginning of November, the figure has decreased. At the same time, the total network hashrate increased by 2%, and the price per hash increased by an impressive 29%. Experts believe that this is due to the increase in the Bitcoin rate and expectations of its further implementation.
Despite positive trends in the sector, the shares of large mining companies have faced a decline. Analysts say the main reason is the increasing complexity of Bitcoin mining, which recently reached a record high.
Thus, Marathon Digital Holdings (MARA) shares have lost almost 25% of their value in a week, which reflects the dynamics of the correction:
Riot Platforms shares also fell, falling by more than 13% over the same period, while Stronghold Digital Mining (SDIG) recorded a 16.4% drop:
The fall in the value of shares of the largest market players demonstrates the duality of the situation. On the one hand, the industry is showing signs of recovery after the decline caused by halving, on the other hand, the increase in mining complexity continues to put pressure on profitability.
