Bitcoin miner stocks lead the start of 2026 with momentum – JPMorgan analysis shows opportunities

Bitcoin mining stocks listed on U.S. exchanges ended January with impressive gains, significantly outperforming the broader market. The investment bank JPMorgan reported in its latest report that the 14 publicly traded mining and data center operators it tracks reached a combined market capitalization of $60 billion — a 23 percent increase from the previous month. This shows that Bitcoin miner stocks are notably resilient compared to the wider market, with the S&P 500 gaining only 1 percent.

Mining Companies Benefit from Reduced Network Pressure

The main driver behind this outperformance was less the Bitcoin price movement and more the technical changes within the mining ecosystem itself. A key factor was the role of winter storms that swept through the U.S. in January, reducing the average network hash rate by 6 percent compared to December. The total computational effort fell to 981 exahashes per second (EH/s) for the month. During peak times, capacity even dropped to 700 EH/s, while mining difficulty decreased by 5 percent, 10 percent below the November record high.

This decline in network competition significantly supported miners’ profitability despite weaker Bitcoin prices. Analysts Reginald Smith and Charles Pearce estimated that mining operations in January generated an average of $42,350 per EH/s in daily block rewards — slightly above December levels. The gross profit showed a more pronounced effect: at about $21,200 per EH/s, it marked a 24 percent increase from the previous month, thanks to improved network efficiency.

Valuation Expansion Continues for Bitcoin Mining Stocks

Alongside operational improvements, Bitcoin miner stocks showed expansive valuation growth. JPMorgan pointed out that by the end of 2025, mining companies were trading at roughly 150 percent of the four-year block reward outlook — nearly three times the average multiple since 2022. These elevated valuations highlight a growing divergence between mining stock prices and the underlying Bitcoin price.

However, it remains clear: despite January’s gains, overall profitability is still well below pre-2024 Bitcoin halving levels. The broader return compression in the mining industry since that milestone persists, limiting upside potential for operators.

Strategic Reorientation: From Pure Bitcoin Mining to AI Infrastructure

Another driver of Bitcoin mining stock performance was a structural shift within the industry. Facing historically tight profit margins after 2024, Bitcoin miners are increasingly transforming into digital infrastructure providers. Riot Platforms exemplified this trend by signing an HPC (High-Performance Computing) agreement with chip manufacturer AMD for its 700-megawatt facility in Rockdale. This development underscores mining companies’ efforts to convert energy-intensive sites into AI-ready data centers, thereby unlocking more stable, long-term revenue streams.

Stock-Specific Dynamics and Market Positioning

The rally was broadly distributed across the segment: twelve of the 14 miners tracked by JPMorgan outperformed Bitcoin’s 4 percent decline in January. The best performer was IREN with a 42 percent increase, while CANGO was among the weakest with an 18 percent decline.

Despite this January performance, the combined valuation of these 14 companies remains about 15 percent below the October 2025 highs — an indication that Bitcoin mining stocks are still considered undervalued by some market participants, while others see warning signs in AI transformation.

Latin America Drives Global Crypto Momentum

A supporting trend shows accelerated adoption in Latin America. Transaction volume in the region surged 60 percent in 2025 to $730 billion, driven by users utilizing cryptocurrencies for payments and cross-border transfers. Brazil and Argentina lead this movement, with Brazil dominating transaction size and Argentina accelerating through increasing acceptance. Stablecoins play a key role as practical tools for remittances abroad and as a way to bypass traditional banking networks.

This global dynamic addresses the long-term growth drivers behind mining and crypto infrastructure, extending beyond mere Bitcoin price movements — a context investors should consider when evaluating Bitcoin mining stocks.