Bitcoin Mining Stocks Dive as BTC Price Drops 20% in a Week
Bitcoin mining stocks are sharply declining as Bitcoin hit a 15-month low of $72,185, down nearly 20% over the last week. Shares of MARA Holdings and Riot Platforms fell 11.6% and 10% in a single day, while Hut 8 and Cipher Mining dropped about 14.3% and 20.8%. The profitability of miners has taken a hit, with their profit-to-loss ratio at a 14-month low, driven by the steep fall in Bitcoin’s price and operational challenges such as recent severe weather. Some miners, like Bitfarms, are exiting BTC mining entirely to focus on providing computing power for the AI sector, though this shift has not prevented further share price declines. Broader technology stocks, including Microsoft, Snapchat, and PayPal, have also experienced double-digit losses due to wider concerns about AI-driven market disruption. Major crypto-related equities like Coinbase and MicroStrategy are down over 8%. In contrast, market indices like the S&P 500 and Nasdaq have seen more moderate declines of 1.59% and 4.47% respectively in the past week.
