Crypto News – Over the past 50 days, the price of Bitcoin has skyrocketed due to the debut of the Bitcoin ETF in January. However, companies that mine the popular cryptocurrency have not been as happy as investors, with one significant exception.
CleanSpark Rise: Unlike Other BTC Miners, It Continued to Rise After ETF Launch
As of now, in 2024, shares of a number of publicly traded mining companies are either flat or declining. Iris Energy (IREN) is down 11%, and Riot Platforms (RIOT) is down 6.2%. Even if mining behemoths like Marathon Digital (MARA) and Bitfarms (BITF) have experienced growth, it has only been by a meager 17% and 5%, respectively. BlackRock‘s iShares Bitcoin Trust (IBIT) has increased in value by 35% since its inception.
Miners to Receive 3.125 BTC per Block After Halving
Given the strong correlation between the price of Bitcoin and the miners‘ economic strategy, the contrast seems odd. In order to acquire a steady supply of fresh Bitcoin that the network issues, mining companies purchase expensive equipment and power. Since the mining sector as a whole receives payouts in Bitcoin, its dollar-based revenue inevitably increases in direct proportion to the price of Bitcoin.
As of right now, each Bitcoin block—which is generated around every 10 minutes—pays miners 6.25 BTC. Having said that, the per-BTC reward is scheduled to permanently decrease to 3.125 BTC per block due to the upcoming Bitcoin halving in April.
There has been a healthy pullback in the miner category over the last few days. But prior to that, mining stocks really front ran the recent Bitcoin price increase—almost all miners were well ahead of Bitcoin. We are seeing a bit of a stabilization across the industry as Bitcoin and mining stocks return to parity,
Isaac Holyoak, Chief Communications Officer of CleanSpark
This year, CleanSpark has outperformed BTC among public Bitcoin miners. The value of its shares more than doubled last month, and they are already up 64% year to date. With a 603% increase over the last year, CLSK has outpaced BTC significantly. Depending on their level of risk tolerance, investors may find different chances with Bitcoin ETFs and mining companies, according to Holyoak.
Miners that are prepared for halving will likely continue to be rewarded with investor confidence,
Holyoak
Leave a comment