The price of Bitcoin mining stocks is decreasing noticeably due to the approaching halving event, which is scheduled to take place later in the week.
In around late April, the reward for mining Bitcoin will be reduced by 50% during the fourth halving event, resulting in a new reward of 3.125 BTC, which is currently worth approximately $200,000.
Bitcoin Miner Stocks Decline
Marathon Digital (MARA) and Riot Blockchain (RIOT), two major Bitcoin mining companies, have seen substantial drops in stock prices. According to Google Finance data, these prices have decreased by around 53% for MARA and 54% for RIOT since their highest points in February this year.
The price of CleanSpark’s (CLSK) stock reached a three-year peak of $23.40 on March 25. However, it has since dropped by over a third, down to $14.48. This represents a 38.1% decrease from its peak. Nevertheless, the stock has still experienced significant growth this year, with an increase of nearly 250%.
An ETF representing Bitcoin miners named the Valkyrie Bitcoin Miners has fallen approximately 28% within just the past thirty days.
At the same time, Bitcoin miners based outside of the U.S., such as Bitdeer Technologies (BTDR) from Singapore and Iris Energy (IRIS) in Australia, both publicly listed on the Nasdaq, have experienced notable drops of 40.8% for Bitdeer and 47.6% for Iris since their year-to-date peaks in mid-February.
Over the weekend, the increase in geopolitical conflicts has led investors to become more cautious, increasing their fear of potential risks.
Miners Optimistic About Bitcoin’s Long-Term Growth
Despite facing various obstacles, Bitcoin mining CEOs remain optimistic, according to Bloomberg’s report. They cite advantages such as cost-effective operations, technological advancements enhancing equipment efficiency, and surging crypto asset demand as potential compensators for the projected $10 billion yearly revenue decrease following the halving event.
Miners are hopeful that the introduction of new Bitcoin ETFs will boost demand and lift BTC prices, offsetting the impact of the recent halving. Since their debut in January, these ETFs, spearheaded by traditional asset managers, have led to a surge in Bitcoin’s growth. This influx of capital has drawn investors from beyond the crypto community.
In late January, there were worries about these Bitcoin miners making a profit as Cantor Fitzgerald warned that the 11 publicly-traded Bitcoin mining companies might struggle post-halving if Bitcoin’s price stayed around $40,000 – its current value at that time.
According to Jaran Mellerud, the founder and main mining strategist at Hashlabs Mining, if Bitcoin’s price fails to increase following the halving, some American miners might have to consider moving their operations overseas or broadening them there to benefit from cheaper electricity rates.
Read More
- PENDLE PREDICTION. PENDLE cryptocurrency
- CKB PREDICTION. CKB cryptocurrency
- EUR INR PREDICTION
- PBX PREDICTION. PBX cryptocurrency
- USD DKK PREDICTION
- ICP PREDICTION. ICP cryptocurrency
- GEAR PREDICTION. GEAR cryptocurrency
- USD VND PREDICTION
- CSIX PREDICTION. CSIX cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
2024-04-18 07:16