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DailyBubble News

Bitcoin mining stocks continue to slump ahead of halving

Bitcoin mining companies like Marathon Digital Holdings, Riot Platforms, and CleanSpark are experiencing a decline in stock value as the upcoming halving approaches. Marathon Digital Holdings, the largest public Bitcoin miner, has seen a 25% decrease in stock value over the past month, while Riot Platforms has lost almost 30%. The Valkyrie Bitcoin Miners exchange-traded fund has also seen a 28% reduction in value this month.

This decrease in stock prices comes amidst increasing short interest in cryptocurrency mining stocks and geopolitical tensions following conflicts between Iran and Israel. Investors are turning to safer assets in light of these uncertainties.

Despite these challenges, the CEOs of these mining companies remain optimistic. They believe that their cost-efficient operations, advanced mining technology, and the growing demand for cryptocurrencies will help offset the anticipated $10 billion annual revenue loss due to the upcoming halving.

The companies are looking to new spot ETFs to drive demand and potentially raise Bitcoin’s price to counteract the effects of the update. These ETFs, introduced by traditional asset management firms in January, have attracted $12.4 billion in cumulative net inflow.

The recent approvals of Bitcoin ETFs in Hong Kong have also sparked optimism among crypto leaders. Sumit Gupta, co-founder of CoinDCX, one of India’s largest exchanges, sees this as a significant development for the industry in Asia. Institutional involvement is seen as a key driver for increased attention and traction in various asset classes, signaling promising prospects for the future growth and mainstream acceptance of cryptocurrencies.

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