- As the whole cryptocurrency market is falling apart, share values of a few biggest openly-traded Bitcoin mining organizations are free falling.
- Bitcoin mining shares are constantly sliding down the cliff in 2022, with Riot Blockchain becoming the greatest loser.
- As of this writing, Bitcoin was exchanging hands with a market value of $28,062.65, down by 28.89% during past 24 hours.
Bitcoin Mining Stocks Falling Hard
In a Twitter thread by Jaran Mellerud, a researcher at Arcane Research, he offered some data exhibiting 5 of the greatest mining stocks by market dip fell by their face, with year to date damages over 50%.
Marathon Digital Holdings is plunged YTD 62%, with Hut8 a little bit more at 63%. As per the Arcane Research data, Riot has suffered an enormous YTD loss at 65%.
Part of the cause of damages, as per Mellerud, is that majority of mining organizations hold bitcoin, meaning that they are influenced by value of Bitcoin. The crowned crypto asset has shedded 60% of its value since its all time high back in November 2021. As of now, Bitcoin is thriving near $28,000, as it has dumped by $12,000 during past week.
Meanwhile, Bitcoin price slump has constantly led to reduced revenue for mining organizations. Mellerud pointed out that, while a plunge in bitcoin value could have caused a reduction in international hash rate, situation is different now. As reported recently, hash rate recently touched a new peak.
Hive Blockchain To Lure Institutions With Planned Share Consolidation
Meanwhile, Canadian cryptocurrency miner Hive Blockchain declared strategies to consolidate its common stocks 5 to 1. As per a press release, the move will lower total common shares issued as well as outstanding from 411,209,923 to 82,241,984, while escalating the organization’s stock price.
Share consolidation is anticipated to lure escalated institutional investment. Frank Holmes, Exec Chairman of Hive stated that although HIVE has an escalated market cap than several of peers, and robust fundamentals as measured by Price/Earning ratios, revenue per worker and debt to equity ratios, the elevated stock price makes more institutional visibility because several of their basic screen exclude shares under $5 a stock.
Source: https://www.thecoinrepublic.com/2022/05/12/bear-market-causes-downfall-in-bitcoin-mining-firms/