Bitcoin Miners Surge 52% In November As Prices Near $100,000

November was a blockbuster month for U.S.listed Bitcoin BTC/USD miners, with the sector riding Bitcoin's meteoric rise to fresh record highs.

JPMorgan analyst Reginald L. Smith noted that Bitcoin rallied to $99,000 before ending the month of November at $97,000, buoyed by a post-election rally.

Against this backdrop, miners surged, with the aggregate market cap of 14 JPMorgan-tracked companies jumping 52% month-over-month to $36.2 billion, far outpacing Bitcoin's 37% appreciation.

Crypto Winners & Losers: Bitdeer Leads The Pack

Smith highlighted Bitdeer Technologies Group BTDR as the standout performer, rocketing 83% in November, driven by its pure-play mining focus and hefty HODL reserves.

On the flip side, Argo Blockchain PLC ARBK lagged, shedding 3% as high-performance computing exposure weighed on sentiment.

He observed that companies with large Bitcoin holdings tended to outperform their peers, underscoring the market’s favor toward miners with direct ties to the cryptocurrency’s rally.

Mining Revenue Climbs, But Halving Challenges Persist

According to Smith, miners reaped rewards from Bitcoin's price surge, with daily block reward revenue jumping 24% month-over-month to an average of $52,000 per exahash per second (EH/s). Gross profit also improved significantly, climbing 64% to $26,100 per EH/s.

However, he noted that these figures remain 48% and 62% below pre-halving levels, reflecting the lingering challenges posed by April 2024's Bitcoin halving.

Valuations Hit All-Time Highs

Moreover, investor enthusiasm pushed miners' valuations to record levels, noted Smith. By month-end, the group traded at 31% of the nominal value of the proved block reward opportunity and 62% of the four-year block reward opportunity—well above historical averages of 18% and 37%.

With Bitcoin’s price rallying and miners' valuations reaching new peaks, the analyst suggests that pure-play miners with robust HODL balances, like Bitdeer, appear poised to ride the wave, while diversified players like Argo Blockchain may face choppier waters.

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