JPMorgan Analysis: Mining companies continue to improve profitability amid hashrate adjustment

In the new year, the Bitcoin mining sector is showing unexpected propaganda. JPMorgan, a major investment bank on Wall Street, predicted in a recent report that the profitability of listed U.S. mining companies is gradually improving, and that early 2026 could be a turning point for the industry. With the current price of Bitcoin moving steadily at the $84.40K level, the mining ecosystem’s fundamental stamina is being upgraded.

U.S. Listed Mining Company Grows $13 Billion in Market Cap

The valuation of 14 U.S.-listed mining and data center operators tracked by JPMorgan increased by a whopping $13 billion in the first two weeks of January. This brings the total market value of these companies to approximately USD 62 billion. The fact that this magnitude of growth has just started the year is a sign that the mining industry is more resilient than expected.

However, it is worth noting that the current valuation is still lower than the high at the end of 2025. Paradoxically, this also means that there is plenty of room for further gains. If the improvement of basic physical fitness continues, there is a high possibility that it will be possible to challenge again within this year.

Profitability rises due to weakening competition and network adjustments

There are two key factors driving the improvement of profitability of mining companies. First, the price of Bitcoin has maintained a slight upward trend. Second, the network hash rate has decreased compared to the end of December. The combination of these two variables brings real benefits to miners.

According to JPMorgan’s analysis team, as of mid-January, the average daily revenue per exahash increased, and the overall mining margin increased by about 300 basis points compared to December, reaching about 47%. Hash price, an indicator of profitability including transaction fees, rose 11% from the end of December. This is thanks to the weakening of network competition and the relatively low mining difficulty.

Analysts believe that this trend will not stop in the short term. This is because the network hashrate fell by an average of about 2% in the first half of January, and it is still meaningfully low compared to October levels. If this situation continues, it will be possible to maintain higher profits per unit of computing power.

Capacity expansion continues, accounting for 41% of global mining power

Facility expansion is steadily underway among listed mining companies in the United States. JPMorgan estimated that about 12 exahashes of new capacity have been added since the end of November, led by Bitdeer (BTDR) and Riot Platforms (RIOT).

As a result of this expansion trend, the total hashrate of publicly traded mining companies in the United States reached about 419 exahashes. This is equivalent to about 41% of the global network hashrate. This means that the share of publicly traded companies in the global mining ecosystem is rising to a record level.

Diversification Strategies and Mining Industry Outlook for 2026

Mining companies are no longer relying solely on block rewards. Entering the fields of artificial intelligence (AI) and high-performance computing (HPC) is attracting attention as a new source of revenue. Diversification using operational facilities and power infrastructure is becoming an essential survival strategy for this industry.

JPMorgan has summarized the conditions under which 2026 will be a boon for the mining industry. These include improved profitability, weakening competition, and unexcessive valuation levels. In particular, if the price of Bitcoin remains stable and the network situation continues to normalize, we believe that the first half of this year will be a very constructive environment for mining companies.

However, it cannot be overlooked that the current revenue per exahash is not at the level of a year ago. Further efficiency improvements and prudent capital management remain important challenges in the future. It should not be forgotten that the true recovery of mining companies lies in the recovery of long-term profitability beyond simple valuation increases.