According to analysts at JPMorgan, U.S.-listed bitcoin miners have achieved a historic milestone with a combined market capitalization soaring to $22.8 billion as of June 15.

In a report to clients penned by Reginald Smith and Charles Pearce, JPMorgan highlighted the robust performance of 14 U.S.-listed mining stocks during the first half of June. Leading the charge were Core Scientific, TeraWulf, and IREN, with gains of 117%, 80%, and 70% respectively. The exception was Argo Blockchain, which experienced a 7% decline amid a 3% drop in bitcoin's price.

Marathon Digital emerged as the largest miner by market cap at $5.3 billion, followed closely by CleanSpark and Riot Platforms at $4 billion and $3 billion respectively. The sector as a whole has surged by 24%, amounting to an impressive $4.4 billion increase since the end of May, largely driven by market reactions to significant developments.

One such pivotal event was CoreWeave's $1.6 billion bid to acquire Core Scientific, representing a 55% premium over its market value. Although the bid was rejected, the move underscored a trend towards AI diversification within the mining sector. This initiative was further solidified by a landmark $3.5 billion partnership between the two firms, facilitating CoreWeave's integration of AI services within Core Scientific’s data centers.

In response to April’s bitcoin halving event, which slashed block subsidy rewards by 50%, miners like Hut 8 and IREN have actively pursued AI-related revenue streams to mitigate the impact on their earnings. This strategic shift aims to capitalize on the intersection of AI and cryptocurrency technologies.

A significant factor contributing to the miners’ market cap surge is their increasing share of the bitcoin network hashrate. Despite an overall decline in bitcoin's network hashrate since the halving, U.S.-listed miners have expanded their market share to 23.8%, up from 22.9% in May and 21% in April. This growth comes as less efficient mining operations exit the network post-halving, consolidating market share among the remaining players.

JPMorgan estimates that U.S.-listed miners are currently trading at approximately 2.25 times their proportional share of the four-year block reward opportunity, significantly higher than the average of 1.5 times observed since January 2022. This reflects heightened investor confidence in the sector's growth prospects amidst evolving market dynamics.

Looking ahead, JPMorgan anticipates a potential increase in hashprice, driven by declining network hashrate levels, which could enhance miners' profitability in the coming weeks.

Despite the challenges posed by fluctuating hashprice levels, JPMorgan remains optimistic about the long-term outlook for U.S.-listed bitcoin miners, buoyed by their strategic initiatives and growing market influence within the cryptocurrency ecosystem.