Bitcoin mining companies linked to high-performance computing (HPC) have not kept pace with the largest cryptocurrency, Bitcoin (BTC), marking three consecutive months of underperformance, according to a research report released by JP Morgan.
Key Insights:
- Decline in Mining Profitability: April saw a dip in profitability for miners as the network hash rate rose by 6%.
- Market Capitalization Increase: The market cap of the 13 mining stocks tracked by JPMorgan increased by 12% in April.
Bitcoin miners pivoting towards other sectors, such as HPC services for the booming artificial intelligence (AI) market, seek to lessen their reliance on cryptocurrency.
Quote from Analysts: “Miners with HPC exposure, such as IREN, RIOT, WULF, and HUT, have significantly underperformed BTC for three months straight,” stated analysts Reginald Smith and Charles Pearce.
April’s overall mining profitability took a hit as the network hash rate increased, resulting in a 6% drop from March’s daily block reward revenue. The average monthly hash rate rose to approximately 872 EH/s, marking a 6% increase month-over-month.
“This is recorded as the second largest sequential growth in the monthly average network hashrate,” the analysts noted. Furthermore, Greenidge (GREE) notably excelled with a 46% gain in April.
For further reading, visit: Bitcoin Miner 1Q Results May Disappoint.
