Analyst: Bitcoin miners thrived in Q4 2024 as BTC surged past $100K

Analyst: Bitcoin miners thrived in Q4 2024 as BTC surged past $100K

Bitcoin miners experienced a strong quarter in Q4 2024, as the price of Bitcoin (BTC) surged past $100,000 for the first time, fueled by growing institutional adoption and renewed optimism following Donald Trump’s pro-crypto presidential election victory. Analysts from H.C. Wainwright highlighted that the sector saw a significant uptick, with BTC reaching a peak of $106,144 in mid-December before settling at approximately $93,400 by the end of the quarter. This marked a 48% increase from the previous quarter, providing a solid foundation for miner earnings.

The Q4 rally was bolstered by massive inflows into Bitcoin ETFs, which attracted a record $16.7 billion, nearly quadrupling the $4.3 billion inflows seen in Q3. The strong ETF demand pushed the average BTC price for the quarter to $83,432, a 36.7% jump from the previous quarter, contributing significantly to the profitability of miners.

As a result, analysts are expecting strong revenue growth and improved profit margins for miners in upcoming earnings reports. The mining sector also saw considerable expansion, with public miners adding 46 exahashes per second (EH/s) to their total capacity, bringing the global hash rate to an average of 738 EH/s for the quarter—a 17.3% increase from Q3. By February 2, 2025, the hash rate had further climbed to 833 EH/s, reflecting increased mining activity.

The rise in Bitcoin prices and heightened mining activity resulted in a 16.4% increase in BTC production, with miners collectively producing 11,366 BTC. Transaction fees also surged by 59.4%, contributing to an overall 41% rise in total miner revenues, which reached $3.7 billion. The market capitalization of public miners grew by 21%, reaching $28 billion, with AI-linked miners outperforming others in the sector.

Looking ahead, Q1 2025 has started on a positive note, with Bitcoin averaging nearly $100,000 and Bitcoin ETF inflows continuing strong at $5.7 billion. However, analysts caution that potential volatility may loom due to ongoing trade tensions between the U.S. and key partners, including Canada, Mexico, and China. Despite this uncertainty, analysts believe any weakness in Bitcoin’s price or mining stocks could present a buying opportunity for investors.