In a display of resilience amidst challenging market conditions, U.S.-listed bitcoin miners accounted for an impressive 25.3% of the global mining network in December 2022, according to a recent research report from Jefferies. This notable share highlights the strength and adaptability of American mining companies as they navigate the ongoing crypto winter.
Mining Profitability on the Rise
Despite the turbulent market, mining profitability saw an uptick in December, thanks to a rally in bitcoin prices that outpaced the increase in network hashrate. The average price of bitcoin gained a substantial 15% during the month, while the hashrate, which measures the total computational power of the network, rose by a more modest 6.5%.
This favorable dynamic translated into an average daily revenue of $59,585 per exahash, marking a 7.1% increase compared to November. The improved profitability provided a much-needed boost to mining companies, many of which have been grappling with compressed margins and high operating costs.
U.S. Miners Demonstrate Strength
Among the U.S.-listed mining companies, Marathon Digital Holdings (MARA) emerged as a standout performer, mining an impressive 890 bitcoin in December alone. This marks a significant increase from the 684 bitcoin the company mined in November, underscoring its ability to capitalize on improved market conditions.
CleanSpark (CLSK) also demonstrated strong performance, coming in second with 668 bitcoin mined during the month. The company’s success can be attributed to its robust mining operations and strategic investments in efficient hardware.
Hashrate Dominance and Analyst Outlook
In terms of installed hashrate, Marathon Digital maintained its position as the largest player in the sector, boasting 53.2 exahashes per second (EH/s). CleanSpark followed closely with an impressive 39.1 EH/s, solidifying its position as a major contender in the industry.
Despite the positive developments, Jefferies analysts remain cautious in their outlook for Marathon Digital, cutting their price target for the company’s stock to $20 from $24. However, they maintained a “hold” rating, suggesting that while challenges persist, the company is well-positioned to weather the storm.
Looking Ahead
As the crypto market continues to evolve and mature, U.S. bitcoin miners are likely to face ongoing challenges and opportunities. The ability to adapt to changing market dynamics, optimize operations, and maintain a competitive edge will be crucial for long-term success.
The impressive performance of U.S. miners in December, despite the challenging environment, serves as a testament to their resilience and potential. As the industry moves forward, investors and analysts will be closely monitoring the progress of companies like Marathon Digital and CleanSpark, as they continue to shape the future of bitcoin mining in the United States and beyond.
