Bitcoin Mining Stocks Jump 49% in Less Than One Month after Poor Figures Recorded in May

By June 16, 2021Binance
Click here to view original web page at www.coinspeaker.com

Bitcoin mining stocks have performed much better than Bitcoin has in the last one year. These stocks are rising despite China’s crackdown.

The three largest Bitcoin mining stocks are rising, following crashes seen across these companies’ valuations last month. These stocks have pulled in considerable weight over the last month, regardless of souring Bitcoin mining sentiments palpable across different geographic regions.

According to a recent report, the three companies include Riot Blockchain Inc (NASDAQ: RIOT), Canaan Inc (NASDAQ: CAN), and Marathon Patent Group (NASDAQ: MARA). Since May 21, Riot Blockchain has jumped 63% from $2.08 billion to $3.4 billion. Marathon also increased by 55% to its current $2.98 billion valuation. All three companies have increased an average of 49% in less than a month.

While these increases may spell progress for the crypto sector, extreme volatility may also be a concern. Between February and April, bitcoin mining firms maintained significant market caps after rising considerably. However, the month of April and early May saw some reversal. Again, by the end of May, their stocks began to rise. The instability is also more seen with a company like Riot Blockchain. Last year, RIOT had a valuation of less than $200 million. By February this year, the company’s market cap had hit $6.12 billion.

Bitcoin Mining Stocks and BTC

At the moment, Bitcoin mining stocks are considerably more promising than the asset itself. Over the past 12 months, stock prices for Riot Blockchain, Hive, Marathon, and Canaan have brought mouth-watering returns to holders. Marathon, which has spiked the highest, comes at 3,119%. In the same timeframe, Bitcoin has increased by an impressive but still much lower 334%.

Recently, China renewed its fight against Bitcoin mining and has come down heavy on operators. Last week, China’s Xinjiang province ordered all Bitcoin miners to immediately suspend operations. The Changji Prefecture Government in the province also sent a circular to subordinate government arms in the Zhundong Economic Technological development park. Specifically, the circular required the park to completely discontinue all mining and other undertakings related to crypto. This is considered a big blow on the country’s crypto clime as the park is considered a major hub.

Back in March, the Inner Mongolia region of Northern China also made a similar move. Its decision was said to be an effort to reduce energy consumption. Basically, Inner Mongolia was supporting energy efficiency demands set by Beijing. Regardless, many crypto community members suggest that the energy efficiency reasons are a ruse to hamper Bitcoin’s growth in the country.

The general effect of the mining ban is significant. Since the ban, large mining pools with Chinese clients have lost a significant chunk of their hash rates. According to BTC.com data, mining pools such as AntPool, BTC.com, Poolin, and F2Pool lost between 11% and 30% of their hash rates within 24 hours of the announcement. Binance and Huobi pools also lost 10% in the same time frame. However, pools outside China, including Foundry USA and Slushpool saw little to no changes.

All Today's Crypto News In One Place