January rally bolsters near-term outlook for bitcoin mining stocks, JPMorgan says
Analysis
Price Impact
MedWhile bitcoin mining stocks saw a significant rally in january, outperforming both btc and the s&p 500, this was largely driven by factors specific to the mining sector (lower network hashrate/difficulty, increased profitability, and ai diversification efforts), rather than a direct surge in bitcoin's price. in fact, bitcoin itself experienced a 4% decline in january. the news indicates resilience and strategic adaptation within the mining industry, but not a direct strong bullish catalyst for btc's price action.
Trustworthiness
HighJpmorgan is a highly reputable global financial institution, and coindesk is a well-established and credible source for cryptocurrency news and analysis. the report provides detailed metrics and a clear rationale, enhancing its trustworthiness.
Price Direction
NeutralThe article explicitly states that bitcoin's price declined by 4% in january. the rally in mining stocks was attributed to internal operational factors (lower hashrate, improved efficiency) and diversification into ai, not to an increase in bitcoin's price. while the mining sector's health can indirectly influence overall market sentiment, this specific report does not provide a direct bullish or bearish signal for btc's immediate price trajectory, rather it highlights the mining sector's ability to adapt despite 'softer' btc prices.
Time Effect
ShortThe analysis focuses on the 'january rally' and the 'near-term outlook' for bitcoin mining stocks. while miner diversification into ai may have longer-term implications for the industry, the direct price impact and analysis presented are primarily focused on recent past performance and the immediate future outlook.
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Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email January rally bolsters near-term outlook for bitcoin mining stocks, JPMorgan says Shares of mining companies rose last month despite softer bitcoin prices as storms cut the network hashrate and AI optimism grew, the bank said. By Will Canny , AI Boost | Edited by Stephen Alpher Feb 4, 2026, 1:08 p.m. Make us preferred on Google January rally bolsters near-term outlook for bitcoin mining stocks, JPMorgan says. (Shutterstock, modified by CoinDesk) What to know : JPMorgan said U.S.-listed bitcoin miners added $11 billion in market value in January, outperforming bitcoin and equities. Winter storms cut network hashrate and difficulty, lifting miner profitability despite softer BTC prices. Valuations remain elevated, trading at roughly three times the post-2022 average block reward multiple, the bank said. Bitcoin BTC $ 76,073.52 mining stocks kicked off 2026 on a strong note, buoyed by falling network competition and fresh enthusiasm around high-performance computing (HPC), Wall Street bank JPMorgan said in the Monday report. The bank noted that the 14 U.S.-listed bitcoin miners and data center operators it tracks ended last month with a combined market capitalization of $60 billion, up 23% month over month, far outpacing the S&P 500’s 1% gain. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . The rally was helped in part by news that Riot Platforms signed a HPC agreement with AMD at its 700-megawatt Rockdale facility, underscoring miners’ push to diversify beyond bitcoin. Facing record-low margins after the 2024 halving, bitcoin miners are repositioning as digital infrastructure providers, repurposing power-dense mining sites into AI-ready data centers in search of steadier, long-term revenue. At the same time, valuations continued to stretch. Analysts Reginald Smith and Charles Pearce said mining stocks were trading at roughly 150% of the four-year block reward opportunity at year-end, about three times the post-2022 average, highlighting a growing disconnect between miner valuations and bitcoin’s price. Operationally, January brought relief. Winter storms across the U.S. forced widespread curtailments, dragging the average network hashrate down 6% month over month to 981 exahashes per second (EH/s), JPMorgan said. The hashrate briefly dipped as low as 700 EH/s during the month, while mining difficulty fell 5% from December and sat 10% below November’s all-time high. The hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain, and is a proxy for competition in the industry and mining difficulty. It is measured in exahashes per second. That drop in competition helped offset weaker bitcoin prices. The analysts estimated miners earned about $42,350 per EH/s in daily block reward revenue in January, up slightly from December, while gross profit jumped 24% to roughly $21,200 per EH/s as network efficiency improved. Still, profitability remains well below pre-halving levels, the bank noted. Stock performance was broadly positive. Twelve of the 14 miners tracked by the bank outperformed bitcoin’s 4% decline in January, with IREN (IREN) rising 42% and Cango (CANG) falling 18%. Even after the rally, the group’s combined valuation remains about 15% below October 2025 highs. Read more: Bitcoin miners HIVE, Bitfarm and Bitdeer downgraded as analyst warns on AI shift Bitcoin Mining Bitcoin News JPMorgan Hashrate AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . In this article BTC BTC $ 76,073.52 ◢ 3.35 %