In December, U.S.-listed bitcoin (BTC) miners represented 25.3% of the global network, according to a recent research report by Jefferies. This statistic underscores the significant role that American mining companies play in the broader cryptocurrency ecosystem, highlighting the competitive nature of the industry.
In its analysis, Jefferies revised its price target for Marathon Digital Holdings (MARA) from $24 to $20, while maintaining a hold rating on the stock. Early trading on Friday saw MARA shares slightly increase by 0.5%, reaching $18.43, indicating a cautious optimism amongst investors.
The report pointed to improved mining profitability in December, driven by a 15% increase in the average price of bitcoin. This rise in value outpaced a concurrent 6.5% increase in the network hashrate, revealing the dynamics of market fluctuations and their direct impact on mining operations.
The hashrate, a critical metric that reflects the total combined computational power used for mining and transaction processing on a proof-of-work blockchain, serves as a proxy for industry competition and mining difficulty.
Furthermore, Jefferies reported that average daily revenue reached $59,585 per exahash, marking a 7.1% increase from November. This trend indicates a favorable market environment for bitcoin miners, though sustainability remains a key concern as operational costs and capital expenditures must be managed carefully.
In terms of production, U.S.-listed mining companies were able to mine 3,602 bitcoin in December, increasing from 3,404 mined the previous month. Notably, MARA led the pack with the highest output of 890 bitcoin, followed closely by CleanSpark (CLSK) at 668 bitcoin.
Additionally, MARA retained its position with the largest installed hashrate in the sector, recording an impressive 53.2 exahashes per second (EH/s). CleanSpark followed with the second-largest hashrate, achieving 39.1 EH/s, further indicating the competitive field among U.S. miners.
For further insights, check out the related article: Bitcoin Mining Profitability Rose in December for Second Month in a Row: JPMorgan.
