JPMorgan says public bitcoin miners to keep gaining share in BTC network hashrate

Publicly listed bitcoin miners are likely to continue gaining a larger share of the bitcoin network hashrate as they cut costs and sustain profitability, according to JPMorgan analysts.These miners are increasingly pursuing vertical integration — securing their own power sources and developing proprietary mining chips — to lower operational costs amid rising hashrates and bitcoin price fluctuations, JPMorgan analysts led by managing director Nikolaos Panigirtzoglou wrote in a report Wednesday.For example, last month, Mara Holdings acquired a wind farm in Texas, while Bitdeer purchased a gas-fired power plant project in Canada. "These strategic moves not only meet energy requirements but also drive costs lower," the analysts said. Meanwhile, Bitdeer’s partnership with TSMC to develop more efficient bitcoin mining chips has allowed it to replace older rigs and sell surplus equipment in secondary markets.While bitcoin miners have also pursued horizontal integration — such as diversifying into AI and high-performance computing (HPC) for additional revenue — many are now prioritizing cost control through vertical integration, focusing on cheaper electricity and mining rigs, according to the analysts.Overall, amid pressure from the 2024 bitcoin halving, rising hashrates and bitcoin price volatility, public miners are focusing on energy self-sufficiency and in-house hardware development, the analysts said.Publicly listed bitcoin miners have also benefited from access to equity funding, as reflected in record equity financing volumes in 2024. However, with bitcoin prices cooling, equity financing has become less viable. As a result, firms are increasingly turning to debt financing to sustain operations while avoiding bitcoin sales, the analysts said.All in all, the push toward vertical integration and alternative financing has already helped public miners expand their share of the bitcoin network hashrate throughout 2024, and the analysts expect this trend to continue in 2025.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.