Public mining stocks outpaced Bitcoin in returns

The market capitalisation of the three largest publicly listed mining companies over the past three weeks has risen by an average of 46%, recovering from a mid-May trough, according to The Block.

Since May 21, Riot Blockchain’s market capitalisation has risen by 77%, from $1.92bn to $3.4bn. Over the same period, Marathon Patent Group rose 39% (from $2.08bn to $2.9bn), and Canaan Creative by 24% (from $1.37bn to $1.7bn).

Over the last year, mining company shares have outpaced Bitcoin on returns. During this period, Bitcoin’s price rose 334%, and the shares of four miners jumped even higher:

• Marathon Patent Group — up 3119%;
• Riot Blockchain — up 1445%;
• HIVE Blockchain Technologies — up 917%;
• Canaan Creative — up 400%.

The rise in miners’ market capitalisation comes amid China’s crackdown on the crypto industry. While Bitcoin mining pools serving Chinese clients report a significant drop in hash rate, American companies are expanding their operations.

In its Q1 2021 report, Canaan Creative also noted that sales of mining equipment to foreign customers accounted for almost 80% of its revenue.

Nanggen Zhang, CEO of Canaan Creative, said that the mining industry helps to use electricity more efficiently, and also creates jobs and supports regional economic growth.

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