KEY TAKEAWAYS
Bitcoin ($BTC) miners experienced a 29% increase in profitability in November 2024.
$BTC’s hashrate increased by a modest 2% in November
Mining firms saw their market value rise by 33% this month.
$BTC miners significantly increased their profitability in the first two weeks of November 2024, driven by a 29% rise in $BTC’s hashprice, according to JPMorgan.
Let’s unpack the key drivers of this growth.
$BTC Hashprice Hits New High
Braiins data shows that $BTC’s hashprice has been consistently increasing since the beginning of the month, reaching $0.059 per terahash unit. This is a notable jump compared to the low of $0.043 per terahash recorded on November 5.
The hash price growth has been fueled by $BTC’s surge to a new all-time high of $98K.
The hashprice takes into account both the fixed block subsidy (3.125 $BTC after the April 2024 halving) and transaction fees, which have also grown due to protocols like Runes and Ordinals built on top of the Bitcoin network.
Trump Supports the $BTC Bitcoin Mining Sector
The US presidential elections have significantly contributed to $BTC’s hashprice increase.
Throughout his campaign, Trump expressed strong support for $BTC and the broader crypto market, fostering optimism in the sector and driving up crypto prices.
In June, Trump hosted a meeting with executives from US $BTC mining companies at his Mar-a-Lago residence in Florida.
Following the meeting, he expressed a desire for ‘all remaining $BTC to be mined in the US,’ emphasizing that this would help the country achieve energy dominance.
Additionally, Trump claimed that $BTC mining could serve as the ‘last line of defense’ against implementing a central bank digital currency (CBDC) in the United States.
He also pledged to establish a ‘Presidential Advisory Council on $BTC and Cryptocurrencies’ to develop clear regulatory guidelines.
Although these statements did not directly impact hashprice, they bolstered the optimism of US $BTC miners, who anticipate a much more favorable regulatory environment in the future.
Slower Hashrate Growth Supports Higher Hashprice
Another factor contributing to the hashprice increase was the slowdown in hashrate growth, which represents the total computational power of the Bitcoin network.
The hashrate rose by just 2% in November, according to JPMorgan. During the first two weeks of the month, the hashrate averaged 718 EH/s (exahashes per second).
However, this growth lagged behind $BTC’s price surge, reducing competition among miners and increasing their profit margins.
As of November 11, $BTC’s price outpaced hashrate growth and continues to accelerate, resulting in higher earnings for miners.
Mining Companies’ Stock Value Soars
Hashprice surge, Trump’s pro-crypto statements, and $BTC’s price increase prompted many investors to allocate resources to $BTC mining companies.
This influx of investment raised the cumulative market value of US mining companies by 33%, or $8B, between October 31 and November 15.
TeraWulf ($WULF) saw its shares climb from $5.98 to $8.82 during this period, while MARA Holdings ($MARA) recorded an increase from $15.50 to $25.23.
Currently responsible for 28% of the global hashrate, US-based mining companies continue to expand their influence on the Bitcoin network.
References
MARA Holdings (Yahoo Finance)
TeraWulf Inc. (Yahoo Finance)
Bitcoin Price (CoinGecko)
Mining Insights (Braiins)
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Cassio Gusson is a journalist passionate about technology, cryptocurrencies, and the nuances of human nature. With a career spanning roles as Senior Crypto Journalist at CriptoFacil and Head of News at CoinTelegraph, he offers exclusive insights on South America’s crypto landscape. A graduate in Communication from Faccamp and a post-graduate in Globalization and Culture from FESPSP, Cassio explores the intersection of governance, decentralization, and the evolution of global systems.
View all articles by Cassio Gusson
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