• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision
Bitcoin Rally Spikes Crypto Mining Stocks, What's Ahead?

Bitcoin Rally Pushes Crypto Mining Stocks Up – What’s Ahead?

David Atlee by David Atlee
2 months ago
in Bitcoin
Reading Time: 3 mins read
Advertisement

After a year-long winter accompanied by massive losses in the mining sector, the recent Bitcoin recovery is a relief to miners. Moreover, the Bitcoin price rally has rubbed off on crypto mining stocks as they witness the highest performance in the past year.

In the 2022 bear market, public crypto miners recorded up to $4 billion in liabilities due to low profitability and stock prices. As a result, many miners who struggled to stay afloat resorted to selling their coin reserves to boost liquidity.

Related Reading: Algorand TVL Hits $177 Million As Altcoin Rally Continues – Can ALGO Sustain This Push?

Bitfarm And Others Record Year-Long Highs In Mining Stocks

The first two weeks of 2023 have brought relief to miners with the BTC price rebound. Among the top gainers is Bitfarms, which recorded a 140% rise in the first 14 days of January.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

Marathon Digital Holdings Inc. followed Bitfarms with a 120% surge in mining stocks. Hive Blockchain Technologies Limited also experienced a rise in its stocks to nearly double the original value in the first two weeks of the year.

MVIS Global Digital Assets Mining index rose by 64% in January, while the Luxor Hashprice Index saw a 21% increase. The Luxor Hashprice Index quantifies possible miners’ profit based on the processing power consumption in the Bitcoin network. The significant increase in these indices partly reflects an increase in mining rewards due to the Bitcoin price rally.

The 2021 crypto bull run led many private mining companies to declare their stock shares publicly. Many Bitcoin mining firms borrowed huge sums for expansion during the 2021 bull market, hoping to break even as profits come. Some invested heavily in equipment purchases and expanding their mining infrastructure.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

However, the long crypto winter in 2022 made these firms vulnerable, leading some into a financial crunch. The liabilities impacted their financial standings negatively during the 2022 bear market. The report shows that public Bitcoin miners have over $4 billion in liability, whereas the highest BTC mining debtors collectively owe close to $2.5 billion.

These huge liabilities plus high energy impacted the operations of these firms in the winter when profit was low. Most of them struggled to maintain minimum operational standards, while some couldn’t keep up with production costs. As a result, leading Bitcoin mining firms like Core Scientific had no option but to declare bankruptcy.

Spike In Bitcoin Mining Stocks Raises BTC ETFs Performance

The rebound in BTC price in January is a breath of fresh air to miners. The once-declining crypto mining stocks have just reached new all-time highs. These recent performances also rubbed off on BTC exchange-traded funds (ETFs). Data shows that BTC ETFs have outperformed most equity ETFs.

After a year-long turmoil, the ETFs reclaimed top positions on the performance charts in January 2023. Valkyrie’s Bitcoin Miners ETF (WGMI) outperformed the equity ETF market with a 40% increase year to date.

Senior ETF analyst at Bloomberg, Eric Balchunas, stated that the Valkyrie Bitcoin Mining ETF is highly dense, with investments in only 20 firms, including Intel, Bitfarm, and Argo Blockchain.

Related Reading: Ethereum Nears $1,600 Level – Is The $2K Mark Hittable This Week?

The WGMI ETF was listed on the Nasdaq market in February 2022 but didn’t include direct BTC investment. Instead, most of its net assets (at least 80%) offer exposure to Bitcoin through securities whose 50% profit comes from BTC mining. Valkyrie invested the remaining 20% in companies whose large portion of held assets is Bitcoin.

Bitcoin Rally Spikes Crypto Mining Stocks, What's Ahead?
Bitcoin price trades above the $21,000 zone l BTCUSDT on Tradingview.com

Generally, crypto ETFs performed low in 2022 due to the prolonged bear market. But things appear to be returning to normal as Bitcoin reclaims lost grounds. BTC is currently trading at $21,248 in a 24-hour price change.

Featured Image From Pixabay/ WorldSpectrum, Charts From Tradingview
Tags: bitcoinBTCUSDTcryptoETFsmining
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
David Atlee

David Atlee

Related Posts

Bitcoin

Bitcoin Price Action Mirrors Q1 2021, Volatility Ahead?

23 hours ago
Bitcoin

Bitcoin Coinbase Premium Continues To Decline, Buying Pressure Ending?

1 day ago
Bitcoin

Quant Explains How Bitcoin ‘ESR’ Can Act As Leading Indicator For Price

1 day ago
Bitcoin US Government

Bitcoin Will Be Stronger Despite Attacks From the US, Says HRF’s Executive

1 day ago
Bitcoin bull case

3 Reasons To Remain Bullish On Bitcoin In Coming Months

1 day ago
Bitcoin

Bitcoin Liquidity Crisis Gets Worse, Here’s What It Means For Price

1 day ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

ShibaLauncher: First Community Driven Launchpad on Shibarium Opens Token Pre Sale To SHIB Holders

March 25, 2023

As the competition in the derivatives market heats up, BitMake is poised to stand out

March 25, 2023

BNB (BNB) Stagnates, Collateral Network (COLT) Presale Takes Off, And Avalanche (AVAX) Loses Ground

March 25, 2023

Don’t Be Slow! TMS Network’s (TMSN) Presale Is Selling Out Fast As Aptos (APT) And Avalanche (AVAX) Fall To A New Low

March 25, 2023

IBC Group Incubates Chirpley, Pioneering a New Era of Digital Marketing with Nano-Micro Influencer Marketplace

March 25, 2023

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games
  • Free Spins
  • Play Finance

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.