The Bitcoin mining sector has kicked off 2025 with impressive results. According to a report by JPMorgan, 12 out of 14 major mining companies outperformed Bitcoin's growth metric in the first two weeks of the year.
Increased Mining Profitability
The Bitcoin network's hashrate increased by 2%, reaching 793 exahashes per second (EH/s), marking a 51% rise compared to the same time last year. Mining profitability, or 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.
Top Performers and Sector Highlights
U.S.-based mining companies have doubled their total hashrate 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. Riot Platforms (RIOT) led the charge with an impressive 32% gain, while Bitdeer recorded the weakest performance, experiencing a 4% decline.
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.
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.
