Bitcoin miner’s stock falls amid halving concerns
Key Takeaways
- Bitcoin mining stocks fell on concerns about profitability after the halving, but analysts consider these concerns unfounded.
- Shares of major miners such as Marathon Digital and Riot Platforms fell about 53% and 54%, with similar declines seen globally.
- Analysts expect mining stocks to recover after the halving.
Investors are concerned about profitability after the Bitcoin (BTC) halving, which is expected to take place on April 20th. get off Stock values of major BTC mining companies.
However, industry experts argue: Fear can be exaggerated.
Did you know?
Do you want to become smarter and richer with cryptocurrency?
Subscribe – We post new cryptocurrency explainer videos every week!
Several major Bitcoin mining companies have experienced significant stock price declines since peaks earlier this year. The shares of two of the largest BTC miners, Marathon Digital and Riot Platforms, have decreased by approximately 53% and 54%, respectively. Similarly, CleanSpark’s stock price is down more than 38% from its three-year high in March.
This trend has expanded beyond the United States, It also affected international companies such as Singapore’s Bitdeer Technologies and Australia’s Iris Energy, which fell 40.8% and 47.6% from their mid-February highs.
Mitchell Askew, senior analyst at Blockware Solutions, cited concerns about profitability following the halving. He predicts: The halving, which reduces mining rewards from 6.25 BTC to 3.125 BTC, will ultimately benefit the sector.
After he halved Investors will likely find their concerns largely unfounded and expect mining stocks to bounce back.
The decline in the stock price can also be attributed to the recent decline in the value of Bitcoin. Bitcoin’s value fell more than 7% in the 24 hours to April 24, triggering a $319 million liquidation.
Despite the immediate concerns and market reaction leading up to the Bitcoin halving, stocks in the sector may rebound as Bitcoin passes.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
With nearly 10 years of experience in the fintech industry, Aaron understands all of the biggest issues and challenges cryptocurrency enthusiasts face. He is a passionate analyst with an interest in data-driven and fact-based content, as well as content targeting both Web3 native users and industry newcomers.
Aaron is our go-to guy for all things digital currency. With a huge passion for blockchain and Web3 education, Aaron is working to transform the space as we know it and make it more accessible to complete beginners.
Aaron has been quoted in several popular media outlets and is a published author himself. In his spare time, he enjoys researching market trends and looking for the next supernova.
