Bitcoin mining stocks continue to decline in 2022 and after the crash of Bitcoin (BTC) prices, due to market instability due to the great collapse of Earth's LUNA token, the Riot Blockchain becomes the biggest loser in the mining sector. BTC mining.
According to data from Arcane Research analyst Jaran Mellerud, in a tweet last Wednesday (11), he revealed that five of the largest mining stocks by market cap fell, with YTD losses of more than of 50%.
Marathon Digital Holdings is down 62% year-to-date, with Hut8 a step up by 63%. According to data from Arcane Research, Riot suffered the biggest cumulative loss of the year, with a 65% loss.
Part of the reason for the losses, according to Mellerud, is that most cryptocurrency mining companies hold bitcoin, which causes them to be directly affected by the value of BTC.
The fall in the price of bitcoin consequently led to less revenue for mining companies. Mellerud noted that although a drop in BTC price may also have caused a decrease in the global hash rate, the situation is different this year. According to the analyst, the drop in the price of BTC and the increase in the global hashrate have caused companies to mine less bitcoin.
Most of these companies did not increase their hashrate as quickly as investors had hoped. Investors may have adjusted their growth assumptions for these companies to more conservative territories,” Mellerud pointed out.
Not even this bleakest scenario, however, caused Canadian cryptocurrency miner Hive Blockchain to change its plans. In fact, she announced the attempt to consolidate her common stock from five to one. According to a statement, the move will reduce the number of issued and outstanding common shares from 411.209.923 to 82.241.984, increasing the company's share price.
At the time of writing, according to data from Coingecko, Bitcoin was trading at $28.007,64, down 6,0% in the last 24 hours, and 29,4% in the last 7 days.
