Bitcoin mining stocks suffered pain today as the entire market reacted to Bitcoin’s third straight day of declines.
Many major miners are losing money at double-digit percentages, with BitFarms ($BITF) losing more than 18%. Riot Platforms ($RIOT) and Marathon Digital Holdings ($MARA) also posted significant declines of 10-11%, followed by Hut8 and Strategy with smaller declines.
The decline puts a damper on the momentum enjoyed by miners over the past few months, when rising BTC prices and expanding hashrates pushed the sector to multi-year highs.
Despite a tough day, many in the Bitcoin mining sector have made substantial gains over the past week, with companies like Applied Digital and Cipher Mining soaring three to four times over the past year.
According to bitcoinminingstocks.io (image below), many stocks in the Bitcoin mining industry ended the day in the red, some by more than 10%.
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Bitcoin mining stocks often track the direct price movement of Bitcoin. Today, Bitcoin fell to the $107,000 level, resulting in many BTC mining stocks closing in the red.
The move comes after a wild two weeks in which more than $19 billion in leveraged positions were liquidated and more than 1.6 million traders exited their positions as cascading margin calls swept across exchanges. Investors are watching closely to see if miners can stabilize or if further decline in BTC will cause further pain for the entire industry.
Bitcoin mining stocks extended a multi-month rally earlier this week, pushing the sector’s combined market capitalization to more than $90 billion, more than double what it was two months ago. Bitdeer Technologies led the rally with a 30% jump after reporting a 32.9% increase in realized hashrate and 452 BTC mined in September.
Cryptocurrency stocks also plummeted
Cryptocurrency stocks were in the red on Thursday as the entire sector came under selling pressure. Coinbase (COIN) fell 1.8% to $330.25, extending its recent decline along with the broader cryptocurrency market.
Robinhood (HOOD) also fell 2.0% to $131.44 as retail investors’ risk appetite continued to decline. Strategy (MSTR) ended the day down 4.3%.
Bitcoin miners operate large-scale Bitcoin mining operations, many powered by renewable energy, to verify transactions and earn Bitcoin rewards. Its profitability largely depends on Bitcoin price, mining efficiency, and energy costs.
In recent months, several companies have begun to diversify by repurposing their computing infrastructure for artificial intelligence and other high-performance data center services.
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