JPMorgan, a global investment bank, has noted a significant increase in investor interest in bitcoin miners following Core Scientific’s announcement of hosting 200 MW of GPUs for AI hyperscaler Coreweave. Despite a decline in bitcoin value, the combined market capitalization of 14 tracked miners has surged by $4 billion since the news broke.
The surge in Interest in Bitcoin Miners
In a recent report, JPMorgan highlighted the growing interest in bitcoin miners over the past two weeks. This surge in interest can be attributed to Core Scientific’s partnership with Coreweave, a leading AI hyperscaler, to host 200 MW of GPUs.
The market capitalization of the 14 bitcoin miners under JPMorgan’s surveillance has seen a remarkable $4 billion increase post the announcement. This growth stands in contrast to the decrease in bitcoin value and the rise in the S&P 500 index. According to the report, JPMorgan states:
“The combined market cap of the 14 miners we track has surged by 22% ($4bn) since the announcement, compared to a 7% decline in bitcoin and a 3% increase in the S&P 500.”
JPMorgan attributes this rise in market capitalization to the exploration of new, potentially more profitable uses for mining facilities, as well as the high value and scarcity of power access.
Among the 14 miners monitored by JPMorgan are well-known names such as Marathon Digital Holdings (MARA), Riot Platforms (RIOT), Cleanspark (CLSK), Hut 8 Mining Corp. (HUT), Core Scientific (CORZ), Argo Blockchain (ARBK), Bitfarms (BITF), Hive Blockchain Technologies (HIVE), Iris Energy (IREN), and Stronghold Digital Mining (SDIG).
Core Scientific Inc. (Nasdaq: CORZ), a major player in high-powered digital infrastructure for bitcoin mining and hosting services in North America, recently announced a long-term agreement with Coreweave. The partnership involves providing 200 MW of infrastructure to support Coreweave’s High Performance Computing (HPC) operations. The infrastructure modifications are scheduled to begin in mid-2024 and be operational by mid-2025, with the possibility of two five-year renewal options.
Coreweave will finance the $300 million capital investment for site adjustments, which will be deducted from hosting fees. Core Scientific anticipates generating over $3.5 billion in total revenue during the initial 12-year term of the contracts once the HPC infrastructure is fully operational.
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