JPMorgan: Mining stocks significantly outperformed BTC in January, supported in the short-term outlook but valuation discrepancies widened.

JPMorgan Chase stated in a report that Bitcoin mining companies performed strongly in early 2026, driven by reduced network competition and renewed enthusiasm for high-performance computing (HPC). The bank noted that the combined market capitalization of the 14 U.S.-listed Bitcoin mining companies and data center operators it tracks reached $60 billion at the end of last month, a 23% increase month-over-month, far exceeding the S&P 500's 1% gain. This surge was partly attributed to news of Riot Platforms signing an HPC agreement with AMD, highlighting mining companies' efforts to diversify beyond Bitcoin. Facing record low profit margins following the 2024 halving, Bitcoin mining companies are repositioning themselves as digital infrastructure providers, transforming power-intensive mining sites into AI-enabled data centers in search of more stable, long-term revenue. The report pointed out that winter storms across the U.S. in January caused an average network hashrate decline of 6% month-over-month to 981 EH/s, while mining difficulty decreased by 5% compared to December. Reduced competition helped offset the weakness in Bitcoin prices. Analysts estimate that miners' daily block reward revenue in January was approximately $42,350 per EH/s, a slight increase from December, while gross profit rose 24% to approximately $21,200 per EH/s. Of the 14 mining companies tracked by JPMorgan, 12 outperformed Bitcoin's 4% drop in January, with IREN rising 42% and Cango falling 18%. The group's overall valuation remains approximately 15% lower than its October 2025 high. (CoinDesk)