Bitcoin mining stocks could see massive growth in 2025, according to a report from HC Wainwright & Co.
The equity research estimates that the market capitalization of Bitcoin mining companies will exceed $100 billion in 2025, up from $36 billion in 2024 – an increase of almost 200%.
According to analysts, this increase is due to the improving mining economy and the ongoing Bitcoin (BTC) bull market. The report points to key factors driving optimism, including Bitcoin’s recent price surge and the continued success of spot Bitcoin ETFs in the US
Approved in early 2024, these ETFs have brought in $35.3 billion in net inflows and currently hold over 1 million BTC, representing 5.5% of circulating supply.
Bitcoin mining uses special computers to validate transactions and secure the network. Miners are rewarded with newly minted Bitcoins, but the process incurs significant energy and operational costs.
According to the report, miners are currently profitable as production costs are well below Bitcoin’s market price of around $96,000.
Bitcoin to $225,000?
The report predicts Bitcoin will reach $225,000 by the end of 2025, driven by increasing institutional adoption, regulatory clarity under the new US administration and increasing scarcity following the recent halving.
This price target implies a total market cap of $4.5 trillion for Bitcoin, or about 25% of gold’s market cap.
Large miners with significant Bitcoin reserves, dubbed the “Big 3” – Marathon Digital, CleanSpark and Riot Platforms – are expected to outperform…
