A quarter (25%) of the world’s cryptocurrency miners are now based in the U.S., according to a new report from Jefferies Financial Group (JEF).
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Mining profitability in the U.S. improved in December of last year as the average price of Bitcoin (BTC) rose 15% in the month, outpacing an increase in the network hash rate of 6.5%, said the Jefferies report. Hash rate refers to the computer power needed to mine and process Bitcoin transactions on a proof-of-work blockchain and is a proxy for mining difficulty.
Average daily revenue was $59,585, a 7.1% increase from November. U.S.-listed companies mined 3,602 Bitcoin in December versus 3,404 the previous month, the bank said in its report. Jefferies noted that MARA Holdings (MARA) mined the most Bitcoin in December at 890 digital tokens, followed by CleanSpark (CLSK) with 668.
Profitability Spikes
Along with its report, Jefferies lowered its price target on MARA Holdings’ stock to $20 from $24 previously, while maintaining a Hold rating on the shares. The price of Bitcoin is currently trading around $94,000, having declined from above $100,000 to start the year.
A separate report from JPMorgan Chase (JPM) in recent days stated that Bitcoin miners’ revenue and gross profit rose for a second consecutive month in December. According to JPMorgan, Bitcoin mining profitability is now at its highest level since April 2024 when the latest halving event reduced the available supply of BTC by 50%.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has risen 48% in the last 12 weeks.
