Major Drops in BTC Mining Shares Despite Bitcoin’s 128% YoY Recovery

The cryptocurrency market has been on a rollercoaster ride, especially in recent months, with Bitcoin up 128% year-on-year since Christmas Day.

However, despite the bullish trends, the impressive performance has not translated into gains for publicly traded Bitcoin mining companies, with many of their shares showing significant declines.

Mining stocks fall despite market gains

Hashrate Index data shows that several major players in the industry are experiencing declines. The biggest losses were recorded by Argo Blockchain. The stock of the UK-based BTC miner with a hashrate of 1,500 PH/s has fallen 84.31% year-to-date (YTD), accompanied by a 5% drop in 24 hours.

Greenidge, which operates two major data centers in Dresden, New York, and Spartanburg, South Carolina, also suffered significant losses, down nearly 9% in the last day and more than 74% YTD.

Other underperforming stocks included Sphere 3D, whose market cap fell to $23 million after share prices fell 4.22% overnight and 71.32% since the start the year

Mawson Infrastructure Group and Ebang International also saw falls of 70% and 53% in their YTD values ​​respectively, with the same scenario replicated in their 24-hour performances, where both fell by more than 4%.

Larger-cap companies such as Riot Platforms, with a recorded hashrate of 29,400 PH/s, also saw notable losses, falling nearly 8% in the last day and 29.92% YTD. For its part, Marathon Digital registered a reduction of 3.56% in 24 hours and a more important 16.05% since the beginning of the year.

The Outliers Taking Advantage of Bitcoin’s Rise

On the brighter side, companies like TeraWulf bucked the trend, posting a year-over-year increase of 152.61%, pushing the share price to $5.81. Interestingly, it suffered the worst one-day drop of all BTC mining stocks, losing more than 12% of its price in that period.

Similarly, Bitdeer gained 131% over 12 months, driven by a slight increase of 0.15% in the last 24 hours to cross the $20 mark. Other stocks that showed resilience included Hut 8 Mining and Northern Data, with a combined hashrate of 8,400 PH/s, whose prices are up 71.83% and 65.73% in that order.

This divergence between BTC’s bull run and the struggles of the mining sector highlights the complexity of investing in virtual assets. It continues to dominate the crypto market, rising 5% since December 24 to push its price to just under $99,000. However, the world’s largest virtual asset by market capitalization is down 5.6% over seven days, balanced by the 128% it has gained since January.

Elsewhere, statistics recently shared by CryptoQuant CEO Ki Young Ju revealed that institutional holders of OG crypto have increased to 31% from just 14% by 2023. The increase has been driven by the growing popularity of Bitcoin exchange-traded funds (ETFs). , government procurement and the effect of MicroStrategy’s BTC purchase.

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