Bitcoin mining stocks saw a strong rally in January, with the combined market capitalization of U.S.-listed bitcoin miners rising 23% month-on-month to nearly $60 billion, according to a recent analysis by JPMorgan.
The rally came despite lower network competition after winter storms, which temporarily pushed the Bitcoin network hashrate down to around 598 EH/s, briefly touching lows near 700 EH/s. Mining difficulty also declined by about 5%, easing pressure on miners’ operations.
AI Demand Boosts Mining Valuations
JPMorgan noted that renewed investor interest was driven by miners increasingly repurposing sites as AI and high-performance computing (HPC) data centers. Partnerships involving companies like Riot Platforms, AMD, and Rockdale added momentum, as markets priced in future AI-related revenue streams.
While miners benefited from improving sentiment, valuations remain stretched, trading at nearly 150% of the four-year average block reward opportunity, according to the report.
Profitability Improves, But Risks Remain
January block reward revenue was estimated at around $42,350 per EH/s, while gross profit reached approximately $21,200 per EH/s, marking a 24% increase from previous levels. However, profitability is still below pre-halving averages, reflecting ongoing cost and competition pressures.
JPMorgan also highlighted that 12 out of 14 tracked mining stocks under performed Bitcoin during January, and the group’s overall valuation remains about 15% below October 2025 highs.
Market Outlook
The report suggests that while Bitcoin miners are benefiting from AI-related narratives and easing network conditions, long-term performance will depend on sustained profitability, efficient energy use, and successful diversification beyond pure Bitcoin mining.
📌 Bitcoin mining stocks remain in focus as investors balance AI optimism against post-halving fundamentals.
