Bitcoin Mining Stocks May Soon Outperform BTC In Near Term, Here’s Why

Bhushan Akolkar
July 22, 2024
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Bitcoin Mining

Highlights

  • Bitcoin miners navigating into cloud computing and AI have helped strong recovery in stock price.
  • Bitcoin mining stocks have surged by 30% and more over the past month against BTC's 5% gains.
  • Analysts predict that the BTC outperformance is likely to continue going ahead.

Along with the sharp recovery in the Bitcoin price over the past three weeks, stocks of the Bitcoin mining firms have also joined the recovery process. Stocks of the public-listed crypto mining firms took a major hit following the Bitcoin halving event in April. However, over the past few months, these BTC mining stocks have given a strong recovery aligning with the BTC price recovery.

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Bitcoin Mining Stocks to Outperform BTC

As per on-chain data provider ecoinometrics, Bitcoin mining stocks have been closing the gap with BTC. After the launch of the spot Bitcoin ETFs in the US in January, and until the Bitcoin halving event, the Bitcoin mining stocks performed poorly. This was mainly because investors sold the stocks in anticipation of declining mining revenues/rewards, and growing costs post the halving event.

But over the past two months, the BTC mining industry has been making efforts to consolidate its operations and pivot to more lucrative areas such as cloud computing and AI.

The BTC mining players like Northern Data are now betting on these major shifts to boost their revenue numbers by the end of this year. As things seem to be improving further, ecoinometrics shows that the BTC mining stocks could outperform Bitcoin going ahead.

“In the previous cycle, Bitcoin miners acted as a leveraged bet on BTC. We believe this is still valid given the small size of miners’ stocks compared to their potential,” added econometrics.

Also Read: Bitcoin Hashrate Prints Sharp Recovery As BTC Price Eyes Rebound

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A Look Into How BTC Mining Stocks Have Performed

Some of the top public-listed Bitcoin mining companies in the US have registered strong recovery over the past month. The largest Bitcoin miner Marathon Digital (NASDAQ: MARA) stock price has surged by 32% over the past month while the BTC price gains stand at 5.26% in the same period.

Other players like Riot Platform (NASDAQ: RIOT) have seen a 30% surge in the stock price over the price month while Cipher Mining (NASDAQ: CIFR) stock gained a staggering 44% over the past month. Market analysts are expecting this outperformance to continue going ahead.

Also Read: Bitcoin Price Analysis As Smart Money Continues Buying Spree; Is $75k Next?

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.