U.S. Bitcoin Miners Expand Dominance as Hashrate Nearly Doubles

JPMorgan reports that U.S.-listed Bitcoin miners have significantly expanded their presence, with their collective hashrate nearly doubling over the past year. The 14 mining companies tracked by JPMorgan saw a 95% increase in hashrate year-over-year, reaching 244 exahashes per second (EH/s). This growth outpaced the global Bitcoin network, which saw a 45% rise in hashrate over the same period. U.S.-listed miners now account for about 29% of the global Bitcoin network, solidifying their dominance in the industry.

The surge in hashrate reflects growing competition and increased mining difficulty. Despite this expansion, Bitcoin’s price has slightly declined since January, putting pressure on miners’ profitability. According to JPMorgan analysts Reginald Smith and Charles Pearce, the daily profitability of miners, measured as hashprice, has dropped by 13% since the end of January. Lower Bitcoin prices and higher hashrate have reduced miners’ earnings, with daily block rewards for February estimated at $53,600—6% lower than in January.

Mining stocks have seen mixed performance amid these trends. IREN recorded a 27% gain in the first half of February, while Greenidge Generation fell by 20%. Overall, the market capitalization of Bitcoin mining stocks covered in JPMorgan’s report decreased by 1% month-over-month.

A separate report from broker Bernstein echoed JPMorgan’s findings, highlighting the increasing share of network hashrate controlled by U.S. Bitcoin miners. As the Bitcoin mining industry evolves, these trends underscore the growing influence of U.S. miners despite challenges in profitability.