Bitcoin mining stocks saw spikes across the board ahead of halving event

Some Bitcoin mining companies trading on the Nasdaq experienced a significant rise in their share prices over a 24-hour period as the Bitcoin halving approached at the end of last week.

April 20th was a notable day for Bitcoin as it experienced its fourth halving. Mining companies had undoubtedly made a mental note of this date, as these events have the power to substantially impact their operations.

Each block mined now brings miners only half the previous reward, thanks to the latest halving event. This reduction in rewards brought miners’ earnings down from 6 Bitcoins to approximately 3.125 Bitcoins per block.

Yet, there was buzz among stock market investors regarding which companies could dominate their sector. Some mining firms experienced significant gains, reaching up to 10%, just before the halving process took place.

On April 19, Riot Platforms (RIOT) took the lead with a significant surge, boosting its stock price by an impressive 10.13% to reach $9.13. This uplift came following the company’s announcement of the opening of a new mining facility, covering an expanse of 250 acres, in Corsicana, Texas.

At the Nasdaq headquarters, Jason Les, as CEO of Riot Platforms, was permitted to symbolically close the trading day by ringing the bell.

Bitcoin mining stocks saw spikes across the board ahead of halving event

Simultaneously, Marathon Digital gained 9.78%, reaching $16.50, and Clean Spark experienced a 5.98% growth to hit $17.20.

When the Bitcoin reward for mining is reduced in half (halving event), miners must adjust their methods to earn the same level of profit if they don’t want to suffer a loss.

they can enlarge their operations to maintain the same income level, or they might need to shut down their operations.

Major Bitcoin miners have been buying large quantities of new mining equipment as reported by CryptoMoon, in anticipation of an upcoming event.

Marjon Digital revealed its intention to buy a Bitcoin mining site in Texas with a capacity of 200 megawatts, costing approximately $87.3 million.

In December 2023, Riot Platforms, a major Bitcoin mining competitor, made a significant expansion by buying 66,560 mining rigs from MicroBT – one of the biggest increases in mining power for the company to date.

In simple terms, the S&P 500 index, which represents the 500 largest US companies, dropped by 0.88% in one day and totaled a 3.54% loss over the last five trading days, according to Google Finance statistics.

Read More

2024-04-20 07:03