BlocksInform
Crypto mines stocks are booming as Bitcoin prices rebounds to another high month over $21,000 after a protracted bearish market.
According to a Tuesday report by bloomberg, a number of Bitcoin mining stocks posted their best monthly performance in at least one year.
Recovery of Bitcoin mining shares.
As per the report, the MVIS Global Digital Assets Mining Index is up by 64% since the beginning of this month, a stark contrast to the 88% drop recorded last year. Bloomberg also highlighted that this was the best month of the index since it was launched in late 2021.
Bitfarms, one of the largest bitcoin mining companies in the industry, recorded an increase of over 140% in the first couple of weeks of January. It is closely followed by marathon digital holdings inc., which jumped by more than 120 per cent. Honeycomb blockchain technologies ltd. Has also seen its inventory values more than twice over the same period.
The report also noted that the luxor hashprice index is up 21% this year, which is in part a reflection of larger rewards from a skyrocketing price of Bitcoin. The index tries to estimate how much a miner can expect to gain in computing power used for the Bitcoin network.
The upswing in Bitcoin equities is in the middle of a larger market rally, which has added more than $100 billion to the total capitalization of the crypto market over the past two weeks. Bitcoin is up more than 28% since the beginning of this year, fueling the demand for mining stocks.
Soaring Prices Relieve Miners from Prolonged Bear Market
Soaring stock values have relieved struggling crypto mining firms since the prolonged 2022 crypto winter, and energy worries pummeled the shares last year.
The 2021 bullish race prompted a number of crypto mining companies to make massive investments in equipment and expansion plans. These companies borrowed huge amounts of money to finance their expansion projects, damaging their finances during the down market of 2022.
The crypto winter has forced many major mining companies to shut down. In December, Core Scientific Inc., the largest Bitcoin miner by computing power, declared bankruptcy.
Other cash-strapped mining companies, like Riot Platforms Inc. and Bitfarms Ltd., began selling a large portion of their reserves last year to increase cash flow.
