Summary
- JPMorgan said recently that the stock prices of Bitcoin mining companies are showing a decoupling from Bitcoin prices.
- It said miners are shifting their businesses to artificial intelligence (AI) infrastructure and are being revalued in the stock market as tech stocks with AI potential.
- JPMorgan analyzed that after the halving, Bitcoin mining costs have increased, prompting miners to move into more stable and profitable AI businesses.
An analysis found that the market capitalization of Bitcoin (BTC) mining companies is exhibiting a 'decoupling' phenomenon, separating from Bitcoin price movements.
On the 23rd (local time), The Block reported that JPMorgan said in a report, "Since July, while the price of Bitcoin has remained sideways, the market capitalizations of listed miners have surged," adding, "This is because Bitcoin mining companies are increasingly shifting their businesses toward artificial intelligence (AI) infrastructure."
JPMorgan explained, "Mining stocks previously showed a high correlation with Bitcoin prices and were effectively regarded as an 'indirect investment vehicle', but now their stock prices are moving based on expectations for AI industry growth."
The report analyzed, "The AI transition is providing miners with a more stable and more profitable revenue source," and "as a result, the equity market is revaluing them as tech stocks with AI potential rather than companies exposed to Bitcoin."
Changes in the Bitcoin mining industry coincide with the sharp deterioration in profitability after the April 2024 halving. JPMorgan forecasted, "The current average cost to mine one Bitcoin is about 92,000 dollars, and after the 2028 halving it is expected to rise to about 180,000 dollars."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
