JPMorgan: Bitcoin Miners Show Mixed Results as HPC Exposure Weighs on Performance
Bitcoin mining stocks saw a mixed performance in the first two weeks of April, with pure-play miners like MARA Holdings (MARA) and CleanSpark (CLSK) outperforming their peers, while those with exposure to high-performance computing (HPC), such as Bitdeer (BTDR), TeraWulf (WULF), IREN (IREN), and Riot Platforms (RIOT), struggled, according to JPMorgan’s latest analysis.
The report pointed out that MARA and CleanSpark managed to outperform Bitcoin (BTC) during this period, while companies with significant HPC exposure underperformed. HPC, commonly used in AI applications, might be adding additional complexity to these mining firms’ operations, leading to lower-than-expected returns.
March had been a strong month for U.S.-listed miners, who increased their capacity by 15 exahashes per second (EH/s) and mined more Bitcoin. However, the first two weeks of April did not replicate this success. JPMorgan analysts Reginald Smith and Charles Pearce noted that network hashrate growth outpaced U.S. miners’ capacity expansion, and the dip in Bitcoin’s price created added pressure on mining economics.
“U.S. miners have struggled to keep pace with the expanding network hashrate, and the decline in Bitcoin’s price early in April has created headwinds for mining profitability,” the analysts stated.
According to JPMorgan’s data, U.S.-listed miners are currently trading at 1.2 times their proportional share of the four-year block reward opportunity, a level that marks the lowest point in over two years.
In terms of mining revenue, miners earned about $41,500 per EH/s per day in the first half of April, reflecting a 12% decrease from March. The network hashrate also surged by 85 EH/s, reaching an average of 900 EH/s, signaling increased competition and difficulty in mining operations.
The total market capitalization of the 13 U.S.-listed Bitcoin miners tracked by JPMorgan fell 2% to $16.9 billion in April, highlighting the challenges miners are facing in the current market conditions.
