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Reading: January rally bolsters near-term outlook for bitcoin mining stocks, says JPMorgan
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© 2025 All Rights reserved | Powered by All News Bitcoin
Mining

January rally bolsters near-term outlook for bitcoin mining stocks, says JPMorgan

February 4, 2026 3 Min Read
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bitcoin btc$76,073.52 Mining shares began 2026 on a robust word, buoyed by declining networking competitors and new enthusiasm round high-performance computing (HPC), Wall Road financial institution JPMorgan stated in Monday’s report.

The financial institution famous that the 14 U.S.-listed bitcoin miners and information heart operators it tracks completed final month with a mixed market capitalization of $60 billion, up 23% month over month, far outpacing the S&P 500’s 1% acquire.

The rally was helped partially by information that Riot Platforms signed an HPC take care of AMD at its 700-megawatt facility in Rockdale, underscoring miners’ push to diversify past bitcoin.

Going through file margins after the 2024 halving, bitcoin miners are repositioning themselves as digital infrastructure suppliers, repurposing energy-dense mining websites into AI-ready information facilities in quest of extra steady long-term revenues.

On the similar time, valuations continued to rise. Analysts Reginald Smith and Charles Pearce stated mining shares have been buying and selling at about 150% of the four-year block reward alternative at year-end, about thrice the post-2022 common, highlighting a rising disconnect between miner valuations and the value of bitcoin.

Operationally, January introduced reduction. Winter storms within the US compelled widespread reductions, inflicting the community’s common hash charge to fall 6% month over month to 981 exahashes per second (EH/s), JPMorgan stated. The hashrate briefly fell to 700 EH/s in the course of the month, whereas the mining issue fell 5% since December and was 10% under November’s all-time excessive.

Hashrate refers back to the whole mixed computing energy used to mine and course of transactions on a proof-of-work blockchain, and is an indicator of trade competitors and mining issue. It’s measured in exahashes per second.

See also  One of the longest mining capitulations nears end, signaling possible BTC price bottom

That drop in competitors helped offset the decline in bitcoin costs. Analysts estimated that miners earned about $42,350 per EH/s in each day block reward income in January, barely up from December, whereas gross revenue rose 24% to about $21,200 per EH/s as community effectivity improved. Nonetheless, profitability stays nicely under pre-halving ranges, the financial institution stated.

Inventory efficiency was usually optimistic. Twelve of the 14 miners tracked by the financial institution outperformed bitcoin’s 4% drop in January, with IREN (IREN) rising 42% and Cango (CANG) falling 18%. Even after the rally, the group’s mixed valuation stays round 15% under October 2025 highs.

Learn extra: Bitcoin miners HIVE, Bitfarm and Bitdeer demoted as analyst warns of change in AI

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Reading: January rally bolsters near-term outlook for bitcoin mining stocks, says JPMorgan
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