While Bitcoin mining stocks are slowly catching up with the rest of the bullish crypto market, the BTC mining industry remains stressed.
During this time, other mining stocks, like Marathon Digital Holdings in the chart below, exhibited a weak correlation with Bitcoin’s price, suggesting that December’s downturn was probably overblown.The negative trend reversed at the start of 2023 as most mining stocks posted impressive gains. The Hashrate Index mining stock index, which
Riot Blockchain, Bitfarms Ltd, Hive Blockchain Technologies, Cleanspark Inc, Marathon Digital Holdings and Hut 8 Mining are the largest publicly traded Bitcoin mining companies with over 1% of the global hashrate share. The top 15 public mining companies have a combined share of around 19%.Notably, the PE ratio of most companies in the industry is between 0 and 2, except for Marathon, Hive and Hut 8. This raises alarms that these companies could be overvalued at their current valuations.
By the end of October 2022, Marathon took $100 million in loans, which risks getting liquidated if Bitcoin’s price falls below the loan threshold value. For instance, if the loan threshold is 150%, the company will be forced to sell some of its BTC to clear the loans if Bitcoin price drops below $15,000.In this regard, it is encouraging to see that Hive, Hut8 and Riot are mostly debt-free and functioning essentially on equity capital.
While mining companies are struggling with profitability, they are determined to conserve their Bitcoin treasury levels. Despite suffering losses since Q2 2022, Marathon was able to retain its treasury holding levels.At the same time, Hut 8 mining uses a more aggressive policy in selling its mined BTC. This has led to a strong increase in its holdings since mid-2022.Whereas, others like Riot and Hive have resorted to using their BTC treasury to cover operational and expansion costs.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Bitcoin, Ethereum Technical Analysis: BTC Nears $24,000 Following Weekend Rally – Market Updates Bitcoin NewsBitcoin started the week trading near a five-month high, as prices consolidated the weekend’s gains. Ethereum declined further on Monday.
Leer más »
Artificial Intelligence and Cryptocurrency: The Rise of AI-Focused Projects in 2023 – Blockchain Bitcoin NewsSince interest in ArtificialIntelligence (AI) peaked, demand for AI-focused cryptocurrency projects has risen dramatically.
Leer más »
Bitcoin eyes $25K as BTC price nears best weekly close in 5 monthsBitcoin has its $25,000 BTC price target 'in sight' prior to key weekly and monthly close events.
Leer más »
Bitcoin (BTC) Price Analysis for January 29Can BTC get to $24,000 next week? NickSzabo4 alistairmilne Maybemore_DC WhalePanda maxkeiser
Leer más »
Bitcoin price pares weekend gains as another CME 'gap' lurks below $20KBitcoin erases $1,000 from its latest highs as BTC price encounters fresh selling pressure.
Leer más »
'Bitcoin (BTC) Over $100,000,' Hedge Fund Founder Shares His Bullish TakeBlockTower Capital founder explains why and how Bitcoin could reach triple digits by 2024
Leer más »