Bitcoin network hashrate rose slightly in the first two weeks of May, driven by improved mining economics and expanding gross margins.
Bitcoin Network Hashrate Rose Slightly in First Two Weeks of May
The Bitcoin network hashrate rose 2% in the first two weeks of May, with mining gross margins expanding sequentially.
Improved Mining Economics
As the Bitcoin price rose, mining economics improved. The ‘hashprice, a metric of daily mining profitability’ , increased by 13% from April. This growth is encouraging for miners, who saw their revenue rise to around $50,100 per EH/s in the first two weeks of the month.
Mining is a crucial sector in many economies, providing essential raw materials for industries such as construction, manufacturing, and energy.
The economic significance of mining lies in its contribution to GDP, employment, and government revenue.
According to the World Bank, the mining industry generates around 30% of global GDP.
Additionally, mining creates millions of jobs worldwide, with many countries relying heavily on it as a source of income.
Furthermore, mining companies pay significant taxes and royalties to governments, supporting public services and infrastructure development.
U.S.-Listed Miners Maintained Market Share
U.S.-listed miners maintained their share of the network hashrate, accounting for about 30.5% of the network, a 1.1% increase from April. However, some mining stocks underperformed the sector in May.
Sector Performance
The total market cap of the 13 U.S.-listed bitcoin mining stocks tracked by ‘JPMorgan‘ rose 24%, or $4.6 billion, this month. Bitdeer (BTDR) outperformed with a 43% gain, while Greenidge (GREE) underperformed with a 5% decline.
Bitcoin mining stocks represent companies that provide infrastructure and services for cryptocurrency mining, such as hardware manufacturing, data center operations, and energy management.
These companies often partner with miners to provide them with the necessary equipment and resources to mine cryptocurrencies like Bitcoin.
According to a report by Grand View Research, the global blockchain market is expected to reach $39.7 billion by 2025, with the mining segment accounting for a significant share.
Commodities such as gold, silver, and copper are mined by companies listed on the U.S. stock exchanges.
Notable U.S.-listed miners include Newmont Goldcorp, Barrick Gold, Freeport-McMoRan, and Kinross Gold.
These companies operate mines across the globe, with significant production in countries like the United States, Canada, and Peru.
The largest U.S.-listed miner by market capitalization is Newmont Goldcorp, which has a presence in over 12 countries.
Conclusion
The Bitcoin network hashrate rose slightly in the first two weeks of May, driven by improved mining economics and expanding gross margins. While some U.S.-listed miners maintained their market share, others performed differently in May.
