When the price of Bitcoin surpassed $99,500 last month, several publicly listed Bitcoin mining companies saw their stock prices soar, according to a research report published by JP Morgan on Monday (December 2).
The total market capitalization of the 14 Bitcoin mining companies tracked by JP Morgan increased by 52% compared to the previous month, reaching $36.2 billion. Among the best-performing companies in November, shares of Singapore-based Bitdeer recorded an increase of 83%, reaching $14.27.
This year, Bitcoin mining companies have faced many significant challenges, especially the fourth Bitcoin halving event. This event, which reduced the reward for each Bitcoin block to 3.125 BTC (equivalent to about $299,000 as of now) in April, tested the operational efficiency of mining teams as their profit margins shrank.
According to analysts at JP Morgan, mining revenue dropped by 50% following the halving event in April, when the reward for each Bitcoin block decreased from 6.25 BTC (approximately $598,000 today). However, with the current price of Bitcoin around $96,193, analysts believe that Bitcoin mining has become more profitable in November.
In terms of daily revenue for Bitcoin mining companies based on one exahash of mining power, revenue increased by 24% in November, from about $42,000 to $52,000. Exahash (EH) is the unit of measurement for the speed that Bitcoin mining companies use to guess a random number in order to earn the next block reward.
Last month, Bitdeer reported a loss of $50 million in the third quarter, attributing it to the halving event affecting their financial results. However, the company also stated that it had made 'significant progress' in commercializing its Bitcoin mining chip line, planning to compete with popular products from Bitmain.
At the end of November, the price of Bitcoin rose to $97,000 following Donald Trump's election victory, marking a 132% increase since the beginning of the year. However, reports stated that the only Bitcoin mining company to exceed Bitcoin's stock price increase was TeraWulf, with a gain of 229%, reaching $7.89 as of now.
TeraWulf has maintained impressive growth despite disappointing third-quarter business results. The company reported a loss of $0.06 per share for the three months ending in September, 75% lower than the forecasted loss of $0.04, according to Google Finance.
Overall, publicly listed Bitcoin mining companies experienced stock price growth following last month's elections. Among the 14 companies tracked by JP Morgan, Argo Blockchain was the only company to end November with a decline, as its stock price fell by 3% during the month to $1.08 on Friday.
However, only a few mining companies exceeded Bitcoin's 39% increase in November, the second strongest gain of this asset this year in terms of return ratio, according to data from CoinGlass. JP Morgan's report highlighted companies Bitdeer, Hut 8, MARA Holdings, and Iris Energy as those with superior growth compared to Bitcoin during this period.
Specifically, MARA Holdings increased its Bitcoin holdings in November, solidifying its position as the second-largest Bitcoin holder, after MicroStrategy. According to Bitcoin Treasuries, the company purchased about 7,200 BTC last month, currently valued at $700 million.
With a market value of $8.8 billion at the end of November, MARA is the most valuable Bitcoin mining company. The company also announced on Monday that it had continued to bolster its Bitcoin holdings worth $3.3 billion, purchasing an additional 6,484 Bitcoin valued at $618 million as of now.
