In accordance with a report revealed by JPMorgan, the full market worth of 14 publicly traded Bitcoin mining firms within the US reached a historic excessive of $56 billion in September.
JPMorgan: US Bitcoin Mining Firms Market Worth Hits File $56 Billion
This marks the primary time the sector has surpassed the $50 billion threshold. The report revealed a 43% month-over-month enhance in market worth.
In accordance with the information, 12 of the 14 firms examined outperformed Bitcoin’s personal worth in September. Throughout the identical interval, the Bitcoin community’s common hash price rose by 9% to 1,031 EH/s. This means that whereas the community’s safety has strengthened, mining competitors has additionally intensified.
Nonetheless, elevated competitors has negatively impacted miners’ profitability. In accordance with a JPMorgan report, miners’ day by day block reward income decreased by 10% in September in comparison with the earlier month. Miners’ gross revenue additionally fell by 17%.
Specialists say this speedy development in mining firms’ market capitalization displays investor curiosity, however the strain on revenues may pose a sustainability danger. The rise in hash price, specifically, may squeeze revenue margins and lift expectations for extra intense consolidation within the sector.
*This isn’t funding recommendation.
