Early 2026 could bring favorable conditions for bitcoin miners as hashrate declines and profitability rises, according to JPMorgan

JPMorgan: Bitcoin Miners and Data Centers Enter 2026 with Renewed Strength

According to JPMorgan, both bitcoin miners and data center operators have begun 2026 on a stronger note, thanks to improving industry fundamentals that could benefit the sector in the coming months.

In a recent January report, the bank revealed that the 14 U.S.-listed mining and data center firms it monitors collectively gained $13 billion in market capitalization during the first half of the year, bringing their combined value to approximately $62 billion.

This positive momentum was attributed to a slight uptick in bitcoin’s price and a reduction in network hashrate, which helped ease competition among miners.

Analysts Reginald Smith and Charles Pearce noted, “On the mining front, daily revenue per exahash rose as bitcoin experienced modest price increases and the average network hashrate dropped from late December levels.”

During this period, daily earnings per exahash climbed, and overall mining margins improved by about 3 percentage points from December, reaching around 47%. The hashprice—a key indicator of mining profitability that factors in transaction fees—was up 11% from the end of December to mid-January.

Bitcoin miners are increasingly expanding into artificial intelligence and high-performance computing (HPC) to diversify their income streams beyond traditional block rewards, which is emerging as a significant driver of profitability.

Looking forward, the analysts pointed out that the ongoing decline in network hashrate could continue to support the sector. JPMorgan estimated that the average network hashrate dropped by roughly 2% in the first half of January and remains well below October’s figures. If this trend persists, it could help sustain higher revenue per unit of computing power.

The hashrate represents the total computational power used to mine and validate transactions on a proof-of-work blockchain, measured in exahashes per second.

However, the analysts cautioned that revenue per exahash remains significantly lower than it was a year ago, highlighting the need for further efficiency improvements and prudent capital management.

U.S. Miners Expand Capacity and Global Influence

Capacity growth among publicly traded U.S. miners continues to be a key trend. JPMorgan estimates that since late November, these companies have added about 12 exahash of capacity, with Bitdeer (BTDR) and Riot Platforms (RIOT) leading the way. This expansion has pushed the total hashrate of U.S.-listed miners to around 419 exahash, accounting for roughly 41% of the global network—a record high. The bank believes this underscores the growing strategic role of publicly traded miners in the worldwide mining landscape.

JPMorgan’s report concluded that rising profitability, reduced competition, and valuations that are high but not excessive create a more favorable environment for the sector as 2026 progresses, especially if bitcoin prices remain steady and network conditions continue to stabilize.