• 23/04/2024 00:15

Bitcoin reaches new highs, but shares of mining companies have collapsed

Despite the fact that Bitcoin crossed the $64 thousand mark and is showing sharp growth, shares of mining companies, on the contrary, have fallen sharply. ForkLog writes about this.

Bitcoin is updating highs, but shares of mining companies have fallen

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Quotes of the Valkyrie Bitcoin Miners ETF fund based on shares of publicly traded mining companies since February 27 they have lost more than 20%. Shares of the industry's two largest companies, Marathon Digital Holdings and Riot Platforms, fell 18.5% and 21.9%, respectively. The quotes of CleanSpark (27.5%) and TeraWulf (25.4%) suffered even more.

Chief analyst at Blockware Solutions Mitchell Askew, in a commentary for Cointelegraph, called the most logical explanation for the divergence that investors are tired of investing in miners as the halving approaches, which will lead to a decrease in the block reward.

The expert noted that in 2023, such a significant divergence of trends was observed twice.

“Both times turned out to be an excellent opportunity to buy shares of miners with a discount,” added Askew.

Earlier, the founder of Hashlabs Mining, Jaran Mellerud, suggested that after the halving, a collapse of industry companies could follow. According to the expert, “investors understand that these firms are barely making money.”


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