U.S.-listed Bitcoin Miners Account for 25% of Global Network, Jefferies Reports
The U.S.-listed bitcoin (BTC) miners have maintained their dominance in the global network, accounting for approximately 25.3% of the total mining activity as reported by Jefferies in a research report released on Thursday. This significant market share is a testament to the growing influence and importance of the U.S.-based mining companies in the ever-evolving cryptocurrency landscape.
Jefferies Cuts Price Target for MARA Holdings, Maintains Hold Rating
In conjunction with the recent developments in the mining industry, Jefferies has made some notable adjustments to its analysis on certain prominent players. The bank has lowered its price target for MARA Holdings (MARA) from $24 to $20 while retaining its hold rating on the stock. This decision reflects a cautious approach by Jefferies regarding the current market conditions and future outlook for MARA.
Mining Profitability Sees Improvement in December
The latest data indicates that mining profitability witnessed a substantial improvement during the month of December. According to Jefferies, the average price of bitcoin experienced a notable increase of 15% in December, surpassing the growth rate of the network hashrate which saw a modest rise of 6.5%. The network hashrate serves as a proxy for competition within the mining industry and reflects the collective computational power dedicated to processing transactions on a proof-of-work blockchain.
Average Daily Revenue Sees Slight Increase
Further highlighting the improvement in mining profitability, Jefferies reported that average daily revenue increased by 7.1% from November to $59,585 per exahash during December. This slight uptick in earnings underscores the resilience of the mining sector and its ability to adapt to changing market conditions.
U.S.-listed Mining Companies See Significant Growth
The impact of improved profitability is evident in the production figures for U.S.-listed mining companies. According to Jefferies, these entities mined a total of 3,602 bitcoin in December, compared to 3,404 tokens the previous month. This represents an increase of approximately 6% and signifies the growing capacity of U.S.-based miners.
MARA Holdings Emerges as Top Miner
Among the notable performers was MARA Holdings, which not only led the pack in terms of production but also boasted the largest installed hashrate at 53.2 exahashes per second (EH/s). CleanSpark (CLSK) trailed closely behind with a hashrate of 39.1 EH/s, solidifying its position as the second-largest miner.
Conclusion
The recent developments in the mining sector underscored by Jefferies' report paint a picture of resilience and adaptability within the industry. As the global network continues to grow and evolve, it remains crucial for stakeholders to stay informed about the latest trends, challenges, and opportunities. The U.S.-listed bitcoin miners, with their significant market share, will undoubtedly play a pivotal role in shaping the future of this dynamic landscape.