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Analysis: Despite the soaring price of Bitcoin, most mining company stocks will still struggle to match its increase by 2024

Analysis: Despite the soaring price of Bitcoin, most mining company stocks will still struggle to match its increase by 2024

Bitget2024/12/25 01:07
BTC-2.51%

According to reports, as of December 24th, Bitcoin's return rate reached 113% in 2024. However, most mining stocks failed to fully capitalize on the rise of cryptocurrencies, closing the year in a downtrend. Data from the Hashrate Index and Google Finance shows that the majority of listed mining companies performed poorly at the year's end, with the highest drop reaching 84%.

Out of 25 listed mining companies indexed, only 7 have generated returns for investors this year. As of this writing, Bitdeer (BTDR) is up 167%, Cipher (CIFR) has risen by 33%, Hut 8 (HUT) by 91%, Iris Energy (IREN) by 72%, Northern Data (NB2) by 58%, Core Scientific (CORZQ) by 327%, and TeraWulf (WULF) by 169%. On the other hand, Argo Blockchain (ARB) fell by 84%, followed by Sphere 3D (ANY) with a 69% drop, MARA Holdings (MARA) by 12%, Hive (HIVE) by 29%, Greenidge (GREE) by 74%, Bitfarms (BITF) by 44%, and BitFufu (FUFU) by 18%, to name a few.

Overall, 2024 was a year of adaptation for Bitcoin mining companies as they addressed issues of reduced rewards and increased costs, seeking new sources of revenue to sustain operations. Bitcoin miners accumulated more than $71 billion in revenue. According to Blockchain.com, miner income on December 22nd was $42 million, while the peak in April exceeded $100 million. Meanwhile, the current average difficulty of the Bitcoin network is 108.52 T, up from 72.01 T a year ago, marking a 50.71% increase over the past 12 months. As operational costs have risen, mining expenses have also significantly increased.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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