Bitcoin miners suffer worst month, lose $6 billion
When Bitcoin price falls, miners suffer double losses
According to a J.P. Morgan report published on Tuesday, publicly traded Bitcoin miners — including companies like MARA and Core Scientific — lost around 25% of their market capitalization last month, amounting to nearly $6 billion.
Bitcoin miners continue to face significant challenges. Data from investment bank J.P. Morgan shows that 14 leading public companies in the sector collectively experienced their worst month ever in March.
“As Bitcoin's price declines, the market cap of top public miners is dropping even more,” the report stated.
J.P. Morgan analysts Reginald Smith and Charles Pearce noted that companies with higher computing power have “generally underperformed pure-play miners for the second consecutive month.”
Some Bitcoin miners have begun transitioning into the AI data center industry in hopes of increasing revenue. However, that shift isn’t as easy as it seems.
The difficult move to new computation
At last week’s Mining Disrupt conference in Florida, major miners stated that switching to AI requires expertise and caution. They acknowledged it as a long-term trend, especially as mining difficulty continues to increase.
Former President Donald Trump, during his campaign, promised support for the digital assets industry and specifically mentioned Bitcoin mining, saying he wants all future Bitcoin to be 100% “made in America.”
However, as mining difficulty rises and BTC prices fall, it becomes harder for companies to cover operational costs.
Meanwhile, Bitcoin has dropped nearly 22% from its all-time high of almost $109,000, reached during Trump’s inauguration on January 20.
MARA shares have lost 9% over the past month, trading at $12.57 at the time of writing. Hut 8 shares also dropped 9% to $13.45, despite a new venture announced with Donald Trump Jr. and Eric Trump. Core Scientific’s stock plunged 20% to $8.14.
As we wrote, energy infrastructure firm Hut 8 Corp has announced the launch of a new subsidiary, American Bitcoin Corp, focused exclusively on industrial-scale Bitcoin mining and the development of a strategic Bitcoin reserve.
