Hi HODLers, Hiveans and Lions,
The Bitcoin ETF launched in January has heavily pumped the Bitcoin Price. One thing has been surprising though. Most Miners did not outperform $BTC over this period of time.
Usually, Bitcoin miners are seen as a leveraged play on Bitcoin.
Shares in several public mining firms are trading flat or down in 2024 so far.
- Riot Platforms (RIOT) -6.2%,
- Iris Energy (IREN) -11%.
- Bitfarms (BITF) +5% and
- Marathon Digital (MARA) +17%
During the same period of time Bitcoin is up 42% and the Blackrock ETF is up 35%!
That said, with the Bitcoin halving coming up in April, the per-BTC reward is set to permanently fall to 3.125 BTC per block. Several analysts from firms like JPMorgan and others agree that the halving could push smaller, less efficient miners out of business.
Nevertheless, the real reason is that these miners frontran #bitcoin performance as Isaac Holyoak, Chief Communications Officer of CleanSpark states:
“But prior to that, mining stocks really front ran the recent Bitcoin price increase—almost all miners were well ahead of Bitcoin.”
This is kind of stabilisation but I expect miners to pick up very soon,
My favorite is #Bitfarms $BITF as it is mostly using Hydro Power from Canada, Paraguay and Argentina.
I have taken some Long Term positions in this one, I might do a deep dive on inleo.io pretty soon.
Stay safe out there,