Increasing Bitcoin mining stocks exceed technology -based shares in 2023: report

Increasing Bitcoin mining stocks exceed technology -based shares in 2023: report

Several public Bitcoin miners were short of bankruptcy at the end of last year. But the latest market recovery gave the Bitcoin mining sector a feeling of careful optimism, which led to massive profits for most associated stocks.

Bitcoin mining shares for victory

Since the Bitcoin mining workers slowly escape the incessant bear trap, the shares connected to the sector are now experiencing a remarkable resuscitation.

According to the BTC mining expert Jaran Mellerud, the Bitcoin mining shares suddenly recovered in parallel to the price of the flagship crypto assets in 2023, which enables "wonding mining shares investors to regain some of their massive losses".

When BTC accumulated 80 % YTD winnings, Hi Crypto Mining The stock index rose by 115 % in the same period. The leading mining companies in the industry have not only exceeded Bitcoin itself, but also the top tech shares. Even the technology -based Nasdaq 100 Index has so far only increased 20 % this year.

The most powerful miners

at the top, Core Scientific positioned itself in 2023 as a Bitcoin mining company, which was most powerful before. It was one of the many companies that registered bankruptcy last year. It had accused Celsius of not paying his electricity bills and then listed the non -payment as a main factor for the liquidity problems. Nevertheless, his shares recorded an astonishing profit of 455 %.

MELLERUD said that his massive debt boosted his equity this year. The Bergmann's cash flows in relation to equity were "positively (but disproportionately) influenced by the improvements of mining economy".

also Digihost, Cipher, Riot, Iris Energy and Marathon cut off well. Most of these mining companies have a relatively low debt in relation to equity and are therefore financially less foreign than Core Scientific, Mellerud stated.

The analyst also pointed out the similarity of the current market cycle with the mini bull cycle from Bitcoin in 2019, in which the crypto asset increase by 260 % from the bottom. If this cycle is repeated, Bitcoin is expected to be $ 42,000 at some point this year. This also means that the Bitcoin mining shares will probably also rise.

.