![]() The network’s hash rate soared as new ASICs flood the market The firm’s aggressive expansion will increase its production capacity from 9.5 EH/s to 23 EH/s by mid-2023.Īt the same time, Canadian mining firm Hut 8 Mining Corporations announced a merger with the U.S.-based Bitcoin Corp to combine their resources and weather the downturn across the industry. Marathon Digital increased its mining capacity by 30% in February. Source: TradingViewĬurrently, mining firms are focused on expanding and sustaining their operations rather than profits. The chart of Marathon Digital’s stock perfectly illustrates the price action across the industry, with a tall candle in January, followed by small moves in the next couple of months. The following months, February and March, saw a muted performance from most mining company stocks. These shares yielded the majority of their Q1 2023 gains in January. The average Q1 2023 gains across the top ten Bitcoin mining stocks is 128%. The performance of the top ten Bitcoin mining stocks as of March 28. were the worst performers, with negative 6.52% and 5.79% moves. Riot Platforms and Cipher Mining led the monthly gains across the sector with a 28.64% and 24.34% rise. ![]() The median monthly gain in the top ten mining stocks is 0.30%, with an average of 5.21%. The Hashrate Index, a proxy for Bitcoin mining stocks, increased 10% in March, going from 1,929 to 2,141 points. Mining stocks are in wait-and-see modeĭespite Bitcoin’s recent 18% rally, subdued performances of most mining stocks can be attributed to the uncertainty around the sustainability of Bitcoin’s price rally and the increasing competition in the mining industry. Miners’ incomes, however, were subdued by the rising network difficulty. The delivery of new machines and an increase in the Bitcoin ( BTC) price led to a surge in the network’s hash rate to new all-time highs. continues as American miners reported one of the biggest ASIC imports in January 2023. While it is encouraging to see that most stocks held onto their impressive January gains, Bitcoin's price action will be crucial for the short-to-medium-term performance of these stocks.Īdditionally, the expansion of the public Bitcoin mining sector in the U.S. ![]() No cash balance or cash flow is included in the calculation.Bitcoin mining stocks had a dull performance in March, with small moves here and there that followed BTC's price movement. Please note all regulatory considerations regarding the presentation of fees must be taken into account. Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. Actual performance may differ significantly from backtested performance. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Backtested performance is developed with the benefit of hindsight and has inherent limitations. This information is provided for illustrative purposes only. No representations and warranties are made as to the reasonableness of the assumptions. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Changes in these assumptions may have a material impact on the backtested returns presented. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Backtested performance is not an indicator of future actual results. Disclaimer: The TipRanks Smart Score performance is based on backtested results.
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