Bitcoin Miner Stocks Experience Decline Amid Profit Concerns Post-Halving

Bitcoin Miner Stocks Experience Decline Amid Profit Concerns Post-Halving

Crypto News – Bitcoin mining company stocks have witnessed a downturn from their peak levels in 2024 as investors express apprehensions regarding their profitability following the recent halving. However, Mitchell Askew, the lead analyst at Blockware Solutions, a Bitcoin mining firm, believes these concerns may not be entirely justified.

“Investors will likely realize that their concerns were largely unfounded,” remarked Askew. He attributed the decline in stock prices to worries surrounding profitability after the halving on April 20, coupled with Bitcoin’s seven-day price drop of 7.5%.

Major United States-based miners like Marathon Digital (MARA), Riot Blockchain (RIOT), and CleanSpark (CLSK) have seen declines of 53%, 54%, and 38.1% respectively from their peak values this year. Similarly, Bitdeer Technologies from Singapore (BTDR) and Iris Energy from Australia (IRIS) have witnessed drops of 40.8% and 47.6% since their highs in mid-February 2024.

Askew expressed optimism, suggesting that the halving could serve as a “buy the news” event for both public Bitcoin miners and the private ASIC market.

Avalanche Blockchain Hosts HELOC Tokenization Launch

Homium, a protocol for tokenizing home equity lines of credit (HELOC), has successfully concluded a $10 million funding round led by Sorenson Impact Group and Blizzard. Built on the Avalanche blockchain, Homium enables homeowners to leverage their home equity without adding to their monthly debt burden.

Through Homium, homeowners can use a portion of their home’s future value as collateral for loan equity. Meanwhile, investors receive tokenized assets representing the price appreciation of a pool of shared homes on the platform. Initially launched in the state of Colorado, Homium has expanded its offerings beyond geographical boundaries.

Tokenization Gains Traction as Next Crypto Use Case

Citi has identified asset tokenization as the next “killer use case” for cryptocurrency. The investment bank predicts that tokenization of real-world assets could reach a market size of $5 trillion by 2030.

Markus Thielen, founder of 10x Research, Sounds Alarm on Stock and Crypto Markets

Markus Thielen, founder of 10x Research, issued a bearish outlook for both stock and cryptocurrency markets, suggesting that they might be on the brink of a significant correction.

“We liquidated all holdings last night,” Thielen wrote, citing concerns over persistent inflation, decreasing rate cuts, and rising bond yields. He emphasized the unexpected and continuous inflation as the primary trigger for his bearish stance.

Bitcoin’s price declined by over 9.3% during the week, trading above $63,400 as of 9:15 am UTC, according to CoinMarketCap data. Thielen’s warning adds to the cautious sentiment prevailing in the markets amidst economic uncertainties.