Bitcoin (BTC) is fighting as low prices for cryptocurrencies add more pressure on business models connected by Bitcoin half of April, according to the JPMorgan search note that was shared with Cointelegraph.
A report on March 3 said that JPMorgan’s mining shares collectively emerge 22 % in the market value in February, where the price of the low price of mining in Bitcoin decreased.
Mining shares such as riots (RIOT), Bitdeer (BTDR), MARATHON Digital (MARA) and Core Scientific (Corz) have reported their profits in the fourth quarter of 2024 in February.
Almost, all of them witnessed a decrease in the post -profit share price, including Core Scientific, which have been better reported to Q4 than expected.
Bitcoin price against network fragmentation. Source: jpmorgan
Related to: An artificial intelligence analysts for bitcoin miners, chips sales before the fourth quarter profits
Half problems
Every four years, the BTC number of each “block” – a package of transactions stored on Blockchain – is reduced by half. Half in April from mining bonuses from 6.25 BTC to 3.125 BTC per block.
Since mining revenues and total profits decreased by 46 % and 57 %, respectively, Jpmorgan said.
Meanwhile, Bitcoin’s decrease contributed to a 9 % decrease in total profits in February.
The total economic uncertainty – including fears of a trade war looming on the horizon – rocked the markets since US President Donald Trump took office in January and announced a 25 % tariff in Canada and Mexico.
Click on artificial intelligence work
Mines are optimistic that the adjacent business lines-including renting high-performance devices for artificial intelligence models and selling specialized micro-chips-will compensate for any revenue losses.
But even from miners who behave on the demand for highly performance computing (HPC) is one of the artificial intelligence models under pressure, note JPMorgan.
Analysts said: “The employees who suffer from HPC also have pressure after the Deepseek announcement and questions about demand for the near -term demand for the ability of the data center,” said analysts.
In January, the shares related to the Chinese company Deepseek have claimed that its artificial intelligence models are able to achieve similar results for American market leaders such as Openai’s Chatgpt for a small part of the cost.
Despite the relapse, mining stocks with wide exposure to artificial intelligence, such as HUT 8, are still richer than their peers.
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