Bitcoin-miners-sell-gID_7.jpg@png” />
In summary
- The market capitalization of 14 miners increased by 52%, reaching $36.2 billion following the rise in the price of Bitcoin.
- Bitdeer led the growth in November with an 83% increase in its share value.
- MARA Holdings expanded its Bitcoin reserves, acquiring 7,200 BTC during November.
As the price of Bitcoin soared above $99,500 last month, some publicly traded Bitcoin Mining companies saw their share prices soar, according to a research note published by JP Morgan on Monday.
The collective market capitalization of 14 Bitcoin miners tracked by JP Morgan rose a “staggering” 52% month-over-month to $36.2 billion, the note stated. Among November’s top performers, analysts noted that shares of Singapore-based Bitdeer soared 83% to $14.27 during the period.
This year, Bitcoin miners have faced notable headwinds along with the fourth Bitcoin halving. The pre-scheduled, quadrennial event, which lowered Bitcoin’s block reward to 3,125 BTC (approximately $299,000 at the time of writing) in April, has tested the efficiency of companies’ mining fleets as their margins have been stretched. to the limit.
According to analysts at JP Morgan, mining revenue has decreased by 50% after the April halving, as Bitcoin block rewards were reduced from 6.25 BTC (about $598,000 today). Although still comparatively low, analysts wrote that the rise in Bitcoin price, currently around $95,680, made it more lucrative to mine Bitcoin in November.
Looking broadly at the daily income of miners in Bitcoin based on an exahash of mining capacity, income increased 24% in November to $52,000 from around $42,000 in October. Also known as EH, the exahash represents a unit of measurement that captures the speed at which Bitcoin miners are guessing a random number needed to earn the next Bitcoin block reward.
Last month, Bitdeer revealed a $50 million loss in the third quarter, citing the impact of the halving on its bottom line. At the same time, the company said it had made “substantial progress” in commercializing its line of Bitcoin mining chips intended to compete with Bitmain’s popular products.
By the end of November, the price of Bitcoin rose to $97,000 following Donald Trump’s election victory, recording a 132% increase year-to-date. However, the report indicated that the only Bitcoin miner to outperform Bitcoin in terms of share price gains was TeraWulf, with its share price up 229% to $7.89 so far this year.
TeraWulf managed to maintain its industry-leading jump despite disappointing third-quarter earnings. The company revealed a loss of $0.06 per share for the three months ending in September, falling 75% below expectations for a loss of $0.04, according to Google Finance.
Overall, publicly traded Bitcoin miners saw a surge in stock price last month following the election. Of the 14 companies tracked by JP Morgan, Argo Blockchain was the only miner to end November in the red, with its share price falling 3% over the month to $1.08 on Friday.
However, fewer than a handful of miners outperformed Bitcoin’s 39% surge in November, which represented the asset’s second-best month in terms of gains this year, according to data from CoinGlass. The JP Morgan report highlighted Bitdeer, Hut 8, MARA Holdings, and Iris Energy as four companies that managed to outperform Bitcoin’s gains during the period.
Notably, MARA Holdings increased its Bitcoin holdings in November, cementing its position as the second-largest corporate Bitcoin holder behind MicroStrategy. According to Bitcoin Treasuries, the company purchased around 7,200 BTC last month that is currently worth $700 million.
With a market capitalization of $8.8 billion at the end of November, MARA positioned itself as the most valuable Bitcoin miner. And the company announced on Monday that it had added to its $3.3 billion Bitcoin reserve, purchasing another 6,484 Bitcoin worth $618 million, as of this writing.
Edited by Andrew Hayward
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
Disclaimer: Please note that the information provided on this page is for News purposes only and should not be considered investment or trading advice. ©Crypto.keynoteusa.com strongly recommends that you conduct independent research and/or consult with a qualified professional before making any investment decisions.
