Bitcoin Miners See Fortunes Rise as Cryptocurrency Hits Record Highs

Bitcoin miners are logging record share prices, thanks to bitcoin's rising valuation. This price growth is attributed the growing popularity of bitcoin among institutional investors, ongoing inflows to exchange-traded funds (ETFs), and the election of pro-crypto President-Elect Donald Trump.

The price of bitcoin has surged over 50% since the halving event earlier this year, and miners have been able to capitalize on this surging value to offset their increased expenses. As bitcoin continues to rise in price, miners are expected to generate increased revenue, which may lead to a rise in their stock prices.

According to JPMorgan analysts, the major U.S. bitcoin mining stocks have surged an average of 83% in November. This surge is largely attributed to bitcoin’s price growth, which saw the cryptocurrency hit a new all-time high of $36.2 billion on Monday. Many miners also logged record share prices this month.

The price growth is also linked to the growing popularity of bitcoin among institutional investors, ongoing inflows to exchange-traded funds (ETFs), and the election of pro-crypto President-Elect Donald Trump.

The miners’ stock prices have surged despite the rising expenses for bitcoin mining operations, which include electricity costs and the purchase of new equipment. However, the surging price of bitcoin has largely outpaced the rising expenses, enabling miners to remain profitable.

One analysis by JPMorgan showed that the stock prices of seven major publicly traded bitcoin miners surged an average of 50% since the bitcoin halving in May. The analysis also found that the miners’ stock prices surged an average of 229% in 2024, compared to Bitcoin’s 132% growth over the past year.

The price of bitcoin surged by over 40% last month, and signs suggest that the world’s top cryptocurrency could experience another breakout month in December. The incoming Trump presidential administration is widely expected to create a more favorable regulatory climate for the digital asset industry, potentially catalyzing a spike in bitcoin prices.