The Bitcoin (BTC) mining sector has kicked off 2025 on a positive note, with 12 out of 14 major mining companies outperforming Bitcoin’s own performance in the first two weeks of the year, according to a report by JPMorgan. During this period, the network’s hashrate increased by 2%, reaching 793 exahashes per second (EH/s), marking a 51% rise compared to the same time last year.
Increased Mining Profitability
The hashrate of the Bitcoin network reflects the intensity of mining activity and competition within the sector. JPMorgan’s analysis reveals that daily mining profitability, also known as hashprice, fell by just 1% compared to the end of 2024. Miners reportedly earned an average of $54,900 per EH/s daily in the first half of January, representing a slight 2% dip from the previous month.
The total hashrate of 14 U.S.-based mining companies has doubled over the past year, now accounting for 30% of the global Bitcoin network. The collective market valuation of these companies increased by 16% in the first two weeks of the year, adding $4.5 billion in value.
Top Performers and Sector Highlights
Riot Platforms (RIOT) led the charge with an impressive 32% gain, while Bitdeer recorded the weakest performance, experiencing a 4% decline. Overall, the sector’s robust start to the year reflects increased confidence and opportunities for growth.
Bitcoin’s Broader Sector Impact
Since the April 2024 halving event, which reduced block rewards for miners, Bitcoin’s value has risen by 56%, with a year-on-year increase of 134%. This significant price growth has presented mining companies with substantial opportunities for expansion. JPMorgan noted that the rise in hashrate outpacing Bitcoin’s price movements has intensified competition within the industry.
Optimism for 2025
The strong performance of mining companies at the start of 2025 paints an optimistic picture for the crypto sector. With increasing network strength and rising market valuations, the mining industry has become a key focal point for investors and analysts alike.
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