The last quarter of 2024 was a positive time for BTC miners, says H.C. Wainwright analysts, with potential volatility ahead.
Bitcoin miners saw significant growth in Q4 2024 as Bitcoin (BTC) crossed $100,000 for the first time, driven by increased institutional adoption and optimism following Donald Trump’s pro-crypto presidential election victory, according to an H.C. Wainwright analyst speaking with crypto.news.
BTC peaked at $106,144 in mid-December before closing the quarter at around $93,400, marking a 48% gain from Q3. The price surge, coupled with record-breaking ETF inflows, contributed to robust earnings for miners.
Spot Bitcoin ETFs attracted $16.7 billion in Q4, nearly four times the $4.3 billion recorded in Q3, helping push the average BTC price to $83,432 for the quarter—a 36.7% increase from the previous quarter.
Analysts anticipate these trends will drive strong revenue growth and wider profit margins in miners’ upcoming earnings reports.
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Bitcoin mining expansion
The mining sector saw notable expansion, with public miners adding 46 exahashes per second to their operations, bringing total deployed capacity to 235.8 EH/s. The global network hash rate averaged 738 EH/s in Q4, a 17.3% increase from Q3. As of early Q1 2025, the hash rate continues to climb, reaching 833 EH/s by Feb. 2.
Higher BTC prices and increased mining activity pushed total BTC production up 16.4% quarter-over-quarter to 11,366 BTC, while transaction fees surged 59.4% to 1,553 BTC. This drove total miner revenues up 41% to $3.7 billion. The combined market cap of public miners rose 21% to $28 billion, with AI-linked miners outperforming their peers.
Looking ahead, the first quarter of 2025 has started strong, with BTC averaging nearly $100,000 and ETF inflows reaching $5.7 billion. However, analysts warn of potential volatility due to ongoing U.S. trade tensions with Canada, Mexico, and China. Despite short-term uncertainty, they view any weakness in BTC or miners as a buying opportunity.
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