BTC Mining stocks double in a month amidst rebounding crypto asset

Jamal Molla
Written By Jamal Molla
Jamal is an English teacher and freelance writer with a passion for NFTs, metaverse, crypto and technology.

As the price of Ether and Bitcoin climbed up recently, bitcoin mining companies were not left out of the show as their stock is also pumping. The stock prices of these different crypto mining companies have surged more than 120% within the last month, notwithstanding the rebounding prices of cryptocurrency assets, increase in bitcoin production, and higher mining profitability. More than four BTC mining stocks double in a month as the industry experience an unprecedented upsurge.

Four different crypto mining companies, including Riot Blockchain, Core Scientific, Hut 8, and Marathon Digital Holdings, have had their stock prices skyrocket within 30 days.

According to Yahoo Finance, these mining companies experience a growth at different levels. For instance, core Scientific saw a rise of 110.39%, Riot Blockchain at 96.69%, Marathon Digital Holdings at 124.12%, and Hut 8 at 98.95%. These stocks have collectively outperformed Ether and BTC, respectively.

In its second-quarter report released on Thursday, Core Scientific announced a staggering 1601% increase in bitcoin mining from the beginning of the year to when it released the report. This amounts to 6567 BTC. However, its second-quarter revenue increased by 118%, which is driven by hosting and digital mining revenue increases.

On the other hand, Hut 8 experienced a 71% increase compared to the previous year, when it mined 946 BTC because of an “increase in hash rate from additional highly efficient miners” and ramping up of activities at its Ontario mining site. Furthermore, Hut 8 saw its revenue upsurge to $43.8 million, an increase of 30.7% in the second quarter.

In its second-quarter results, Marathon Digital announced an increase in its yearly bitcoin production, producing 707 BTC notwithstanding the “challenging macro environment.” However, the company saw an 8% increase in its overall bitcoin production activity. This boom isn’t in the mining sector alone, as decentralized Apps on Polygon hit 37,000 and boast a 400% increase.

These three bitcoin mining companies announced widened losses caused by impairment losses on their cryptocurrency holdings. Since June and July slump, the stock price surge has also corresponded with increasing crypto prices as ETH and BTC gained 67.8% and 18.0%, respectively.

In recent statistics posted by Bitinforcharts on June 19, Bitcoin mining profitability has also rebounded from its one-year low. Nevertheless, bitcoin mining companies have faced several issues in the last few months, negatively affecting their profitability and BTC production. These issues include higher energy costs and lower asset prices, primarily attributed to the war between Russia and Ukraine. Another reason behind this is due to the heat wave in Texas.

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