JPMorgan Chase: The total market value of U.S. mining companies hit a record high! But miners are still selling Bitcoin aggressively

In this bull market, as the price of Bitcoin continues to rise, the stock prices of many Bitcoin mining companies have also risen, achieving outstanding performance. Just yesterday (17th), JPMorgan pointed out in its latest research report that the total market value of the 14 U.S.-listed Bitcoin mining companies it tracks has hit a record high on June 15. Reaching US$22.8 billion.

Core Scientific’s stock price soared nearly 300% in a single month

JPMorgan Chase pointed out that in the first half of June, the stock price performance of these 14 mining companies was almost better than that of Bitcoin. Among them, the global Core Scientific (CORZ), one of the largest mining companies, has the largest increase, reaching 117%. In the past month, it has soared 297%, with a market value of US$1.837 billion.

However, Argo Blockchain (ARBK) performed the worst, falling 7% in June and failing to outperform Bitcoin.

Core Scientific cooperates with Core Weave

As for the reason why Core Scientific’s stock price soared in June, it may also be attributed to the cooperation between Core Scientific and the AI ​​company Core Weave announced earlier this month.

On June 3, Core Scientific announced that it has signed an agreement with Core Weave. As part of the cooperation, Core Scientific will provide up to 200 megawatts of power hosting services to Core Weave’s GPUs, which is expected to provide Core Scientific brings in more than $3.5 billion in cumulative total revenue.

It is understood that Core Weave is a cloud service provider that provides high-performance computing resource rental services. Due to its close relationship with NVIDIA, the current chip manufacturing leader, some people also jokingly call it "NVIDIA's biological son" .

Mining difficulty continues to decline after Bitcoin halving

In addition, JP Morgan analysts Reginald Smith and Charles Pearce also said that since Bitcoin completed a new round of halving in April, , the difficulty of Bitcoin mining is also continuing to decline, and the share of these 14 listed mining companies has also grown: the network hash rate (a measure of industry competition and mining difficulty) has dropped by about 1%(7EH/s). These 14 companies now account for approximately 23.8% of the global network’s hash rate, a 1% increase from last month, which is an exciting sign.

Bitcoin miner balance dropped to 1.8 million

However, although mining company stocks continue to rise and mining difficulty decreases... According to Glassnode data, since October 2023, Bitcoin has The BTC balance in miners' wallets has continued to decrease by 30,000, and the current total is approximately 1.8 million.

It is speculated that the reason is that on the one hand, it may be due to the increase in operating costs of mining companies after the Bitcoin halving, and they need to sell Bitcoin to obtain working capital or purchase new equipment to improve their mining capabilities; on the other hand, Smaller mining companies may have become unsustainable and can only sell Bitcoin to take profits and close mining operations. (This is why the mining difficulty decreases, but miners continue to sell BTC)

Miner Bitcoin Balance

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