Bitcoin (Btc) Mining stocks are difficult while refusing cryptocurrency prices increases additional pressure on business models that are forced to stop April by the Bitcoin network, according to a JPMorgan research record shared with cointelegraph.
Mining stocks monitored by JPMorgan collectively poured 22% on the market capitalization of the market in February as the Bitcoin price collapse exploded the mining economy, the March 3 report said.
Mining stocks such as Riot Platforms (Riot), Bitdeer (BTDR), Marathon Digital (Mara) and Core Scientific (Corz) reported their fourth quarter of 2024 income in February.
Almost all of them have seen a decline in post-earnings stock price, including major scientific, which reported better than the expected Q4 revenue.
The price of bitcoin compared to the network hashrate. Source: JPMorgan
Related: Analysts Eye Bitcoin Miners’ AI, Chip Sales Leading Q4 revenues
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Every four years, the number of BTC mined per “block” – a bundle of transaction data stored in the blockchain – is reduced by half. The April Halving event reduced mining rewards from 6.25 BTC to 3.125 BTC per block.
Due to the division, mining and gross income revenues have dropped an average of 46% and 57%, respectively, JPMorgan said.
Meanwhile, Bitcoin’s lower prices contributed to a 9% drop in gross income in February, the analysts said.
Macroeconomic uncertainty – including fears of a floating trade war – has Rattled Market Since US president Donald Trump received an office in January and announced 25% tariffs in Canada and Mexico.
Pressure on AI businesses
Miners are optimistic that the adjacent business lines-including the leasing of high-performance hardware on AI models and selling expert asic microchips-are more than offsetting any losses in income.
But even the cashing miners in demand for high-performance computing (HPC) from artificial intelligence models are under strain, JPMorgan said.
“Operators with exposure to the HPC also felt pressure following the Deepseek announcement and questions around the nearby demand for data center capacity,” the analysts said.
In January, AI-related stocks hit when the Chinese AI company claimed Deepseek that AI models have produced results comparable to US market leaders such as Openai Chatgpt for a portion of the cost.
Despite setback, mining stocks with extensive AI exposure, such as Hut 8, are richer appreciated than peers, JPMorgan said.
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