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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.

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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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