Bitcoin

BTC mining stocks double in a month as production ramps

Crypto mining companies have seen their stock prices increase as much as 120% over the last month, amid rebounding crypto asset prices, higher mining profitability, and sharp increases in BTC production.

Crypto mining companies Marathon Digital Holdings (124.12%), Core Scientific (110.39%), Hut 8 (98.95%), and Riot Blockchain (96.69%) have seen their stock prices rocketing upwards over the last 30-days, according to data from Yahoo Finance — significantly outperforming Bitcoin (BTC) (18.0%) and Ether (ETH) (67.8%) asset prices.

In a Q2 results filing on Aug. 11, Core Scientific reported a staggering 1601% increase in self-mined Bitcoin year-to-date, reaching 6,567 Bitcoin. Q2 revenue rose 118% year-on-year to $164 million, driven by increases in digital mining revenue and hosting revenue.

Hut 8 Mining Corp. also saw its mined Bitcoin increase in the quarter, up 71% compared to the prior-year period to a total of 946 mined Bitcoin due to “an increase in hash rate from additional highly efficient miners” and ramping of activities at its Ontario mining site. Its revenue also increased in Q2, rising 30.7% year-on-year to $43.8 million.

Marathon Digital, which shared its Q2 results earlier this week, also said it had increased its Bitcoin production year-on-year, producing 707 Bitcoin in the quarter despite a “challenging macro environment,” with an 8% increase in Bitcoin production activity.

All three companies, however, posted widened losses, driven by impairment losses on their crypto holdings. 

The stock price surge has also coincided with climbing crypto prices since the June and July slump, with key crypto assets including that Bitcoin (BTC) and Ethereum (ETH) gaining 18.0% and 67.8% respectively.

Bitcoin mining profitability has also rebounded from year-lows on June 19, according to Bitinfocharts.

Bitcoin mining companies have had to deal with a number of factors in recent months that have impacted BTC production and profitability, including lower asset prices and higher energy costs, which have been partially attributed to the heat wave in Texas and the Russia-Ukraine conflict. 

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