BTC Rallies 128% YoY, but Mining Stocks Face Major Declines in 2023

Bitcoin 128% annual rally hasn translated into gains for mining stocks, with major players like Argo Blockchain and Greenidge suffering significant YTD losses despite bullish crypto market trends.

The cryptocurrency market has seen a dramatic rally in 2023, with Bitcoin (BTC) climbing 128% year-on-year as of Christmas Day. However, this impressive performance hasn’t resulted in gains for publicly traded Bitcoin mining companies, many of which are experiencing substantial stock declines.

Mining Stocks Falter Amid Market Gains

Data from the Hashrate Index reveals significant losses across the mining sector. Argo Blockchain, a UK-based BTC miner with a 1,500 PH/s hashrate, has been hit the hardest, with its stock plunging 84.31% year-to-date (YTD) and falling an additional 5% in the last 24 hours.

Other notable losses include:

• Greenidge: Operating two data centers in the U.S., the company’s stock has dropped nearly 9% in the last day and 74% YTD.
• Sphere 3D: Its market cap shrank to $23 million after shares fell 4.22% overnight and 71.32% this year.
• Mawson Infrastructure Group and Ebang International: Registered 70% and 53% YTD declines, with similar 24-hour drops of over 4%.
• Riot Platforms: Despite a 29,400 PH/s hashrate, its stock slid almost 8% in the last day and 29.92% YTD.
• Marathon Digital: Reported a 3.56% 24-hour drop and a 16.05% YTD decline.

Outliers Amid the Declines

Amid these losses, a few companies bucked the trend. TeraWulf posted a YTD surge of 152.61%, pushing its stock price to $5.81, though it suffered the largest single-day dip of all BTC-miner stocks, shedding over 12%.

Bitdeer also performed strongly, gaining 131% over the year and a slight 0.15% in the past 24 hours to breach the $20 mark. Other resilient stocks include Hut 8 Mining and Northern Data, which saw YTD increases of 71.83% and 65.73%, respectively.

Broader Market Dynamics

Bitcoin continues to dominate the crypto market, trading just below $99,000 after a 5% increase since December 24, balancing its 5.6% drop over the past seven days with a robust annual gain. Meanwhile, institutional adoption of BTC has surged, with holdings spiking from 14% in 2023 to 31% in 2024, driven by spot Bitcoin ETFs, government acquisitions, and major purchases by companies like MicroStrategy.

This divergence between Bitcoin’s bullish run and the struggles of the mining sector underscores the complexity of crypto investments and the unique challenges faced by different industry players.

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