Bitcoin miners boost network share as JP Morgan notes sector growth

A new report from JP Morgan reveals that publicly listed Bitcoin (CRYPTO:BTC) miners in the U.S. have significantly increased their share of the network's hash rate, reaching a record 28.9%.

According to the bank’s investor note released on Wednesday, 14 of these miners now control a notable portion of the global computational power used to secure the Bitcoin network.

The hash rate measures the amount of computing power used to validate transactions and mint new coins on the network.

A higher share in the hash rate suggests greater control and influence within the Bitcoin mining space.

JP Morgan analysts highlighted that U.S. crypto mining stocks have seen a rise in value over the first two weeks of October, with some of these companies now being viewed as attractive investment options ahead of the U.S. presidential election next month.

The report also emphasized that investing in Bitcoin mining firms offers an alternative way for institutional investors to gain exposure to the cryptocurrency market, instead of directly buying Bitcoin.

This approach has been popular among larger players, particularly before the availability of U.S.-based spot Bitcoin exchange-traded funds.

The growth in the U.S. share of the hash rate is seen as a positive development, reflecting the efficiency and financial stability of publicly listed miners.

Despite some recent profit challenges, these firms, including names like CleanSpark, IREn, and Marathon Digital, continue to dominate the sector.

The shift to North America followed China’s decision to ban Bitcoin mining in May 2021, which prompted several mining companies to relocate their operations.

JP Morgan analysts noted, “The increase in hash rate share among U.S. miners is encouraging and indicates the funding advantages of public operators.”

At the time of writing, the Bitcoin (BTC) price was $67,678.96.