By Shelly Melancon (Switzerland)
As the broader crypto market is on a freefall, the share prices of most Nasdaq listed BTC-mining firms are also following a similar pattern. Even though the share price of riot blockchain has fallen the most among stocks of BTC-mining companies, the shares of the majority of the BTC mining firms continue to decline.
Top Five BTC Mining Stocks Lose 50% Of Their YTD Value – Arcane Research
One of Arcane Research’s top analysts, Jaran Mellerud, used a Twitter thread today to prove that the stocks of the top five BTC mining stocks recorded YTD losses of up to 50%. Mellerud further disclosed that apart from Riot, whose YTD loss was 65%, the YTD of Hut8 and Marathon Digital also dipped by 63% and 62%, respectively.
Mellerud explained that the stocks of these companies are down because they hold BTC. Thus, the huge drop in BTC value is affecting their value as well. Since reaching a peak price of nearly $70K last November, the current price of the leading digital asset shows that it’s now 63% short of that value.
BTC’s price has plunged to $27.5K as of this writing, losing nearly $13K in the last seven days. Hence, it is no surprise that the stock prices of BTC mining firms are also taking a hit. Mellerud also remarked that it is possible that the decline in the global BTC hash rate may have also contributed to the recent BTC price dip.
Also read:However, she added that the hash rate has been increasing since the start of this year. She further said, “BTC mining firms aren’t mining BTC at the rate they were doing before the decrease in hash rate. Hence, investors may now be more conservative with their growth expectations.”
Top Canada-Based Crypto Miner Consolidates Common Shares
Nonetheless, hive blockchain (a Canada-based crypto miner) has revealed that it would consolidate its common shares in the ratio of 5:1. The official announcement explained that lowering the common shares of the stocks would enhance the company’s stock value. The official statement also stated that the move would cause a reduction of the outstanding issued shares from over 411M to over 82M.
Hive CEO, Frank Holmes, opined that this consolidation move would entice more institutional investors. Holmes opined, “the increase in hive’s share value makes it more visible to institutional investors since they usually don’t consider stock prices that are less than $5.” Once the appropriate authorities approve this consolidation move expectedly by next week, trading can start on the Nasdaq stock and TSX exchanges.
Two months ago, Hive made a move to increase its mining operations following an agreement with Intel to buy more ASIC mining chips. Enhancing business operations and driving its stock price to become attractive to institutional investors, Hive continues to position itself as the best publicly traded BTC mining stock.
As long as BTC mining is still relevant, BTC will still be valuable, and BTC mining companies will keep thriving.
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