JPMorgan says bitcoin miners are decoupling from the bitcoin price as they pivot to AI

JPMorgan analysts, led by Nikolaos Panigirtzoglou, observe that publicly listed bitcoin mining firms' market capitalization has sharply increased since July, diverging from Bitcoin's sideways trading, indicating a "clear breakdown" in correlation. This decoupling is attributed to major miners pivoting their business toward artificial intelligence infrastructure, which offers more stable and higher-margin revenue streams compared to volatile bitcoin mining. Consequently, equity markets are re-rating these companies based on AI potential. This shift occurs amid profitability pressures following the April 2024 halving, which drastically reduced block rewards, pushing the estimated cost to mine one Bitcoin above the current market price. The trend favors large, well-capitalized miners capable of shifting capacity between Bitcoin and AI, while smaller firms may struggle or explore other assets like Ethereum and Solana.

(Source：The Block)