Matrixport Highlights Growth Potential for Mining Stocks

Shares of mining companies may see an increase in value due to the stabilization of their revenue declines and their lag behind Bitcoin’s performance, according to Matrixport.

#Matrixport Today ? — Oct 8: #Bitcoin Mining Stocks Poised for Rebound as Revenues Stabilize Post-Halving#cryptomarket #MarketTrends #MarketInsights #BTC #miningevent pic.twitter.com/sK7oxvBnhU

— Matrixport Official English (the only official X) (@Matrixport_EN) October 8, 2024

Experts estimate that the daily revenue of public mining companies plummeted from $70 million to $31 million following the halving in April 2024.

Many industry participants opted not to sell their mined coins, choosing instead to hold them. MicroStrategy follows a similar strategy, which has rewarded its shareholders, experts noted.

CoinDesk highlighted the better performance of stocks from players who diversified into AI and high-performance computing.

This trend emerged in September amid the growing share of “clean” miners in the hashrate.

Companies like MARA Holdings (MARA), Riot Platforms (RIOT), and CleanSpark (CLSK) improved their positions in terms of the number of coins mined.

The publication noted that these companies have strong balance sheets and larger production facilities, which help them overcome the decline in mining profitability. However, such resilience did not shield their stocks from sluggish performance. By the end of the month, their market capitalization increased by 4-9%.

Conversely, shares of Core Scientific (CORZ), TerraWulf (WULF), and IREN (IREN) outperformed the leading cryptocurrency in September, showing growth of up to 25% compared to Bitcoin’s 7%. These firms have focused on AI and high-performance computing.

In addition to the halving, the launch of BTC-ETF, which attracted some investor demand, was noted as an explanation in the publication.

In September, Bitcoin miners earned a total revenue of $815.7 million — the lowest since the beginning of the year.

Earlier, JPMorgan suggested a slowdown in Bitcoin’s hashrate growth.