Translation: Blockchain in Vernacular
According to a new report, U.S.-listed bitcoin miners have increased their control over the global network’s computing power, pushing their share to a new high. About 14 U.S.-listed bitcoin miners control a record 28.9% of the network. Analysts at investment banking giant JPMorgan wrote in an investor note on Wednesday.
Hash rate refers to the computing power used to mint new coins and ensure the security of the Bitcoin network.
The report noted that the top U.S. crypto mining stocks "rallied" in the first two weeks of October, with these companies typically valued at a discount to their potential gains in Bitcoin, making them attractive investment options ahead of the upcoming election next month.
Investors can gain indirect exposure to cryptocurrencies by investing in companies such as mining companies, rather than investing directly in the asset class, which was the preferred choice of some large investors before the launch of an exchange-traded fund based on spot bitcoin in the United States this year.
Analysts said the increase in the U.S. share of computing power was “encouraging and reflects advantages in efficiency and financing for some listed operators.”
The view comes after the bank noted last month that while profits for listed bitcoin miners have been squeezed, their dominance of the largest digital currency’s computing power has been growing.
Top U.S. bitcoin miners — such as CleanSpark, IREn and Marathon Digital — are listed on U.S. stock exchanges.
In the Bitcoin world, expensive machines perform hashing — the process of converting data into a fixed-length string of characters.
This process is necessary on the Bitcoin network, such as creating private keys, so that users can conduct transactions.
The overall computing power of the world's largest cryptocurrency was previously concentrated in China. Since the country banned Bitcoin mining in May 2021, companies have been forced to relocate their operations elsewhere.
North America has since become the most dominant player in Bitcoin mining, along with parts of Asia
