Bitcoin Miner Stocks Outperform Major Companies Amid Anticipated ETF Approval
Summary:
Surging activity for Bitcoin miner stocks Marathon Digital and Riot Platforms has been recorded in anticipation of a Bitcoin exchange-traded fund (ETF) approval. Marathon Digital's trading volume exceeded 105 million shares in 24 hours, outperforming major companies like Tesla, Apple, and Amazon. Bitcoin has registered a 163% growth this year, but Bitcoin miner stocks have significantly outperformed it - Marathon Digital and Riot Platforms gained 767% and 452% year-to-date, respectively. Following 2022’s disappointments, crypto-related stocks started the year as popular short trades, but over $6 billion worth of shorts have been liquidated this year.
In a surge of activity ahead of an expected approval of a Bitcoin exchange-traded fund (ETF), stock transactions for Bitcoin miner, Marathon Digital, have seen a dramatic increase. The publicly traded company has had over 105 million stocks traded in just 24 hours, outperforming even major brands like Tesla, Apple, and Amazon, according to market analysis from Yahoo Finance. Marathon Digital's competitor, Riot Platforms, is also riding this wave as the sixth most-traded stock.
This thriving trade activity surrounding Bitcoin mining shares emerges as mining companies prepare to broaden their footprints. This expansion is in anticipation of a probable Bitcoin ETF approval early in the year and upcoming Bitcoin halving in April. On the 19th of December, Marathon Digital revealed plans to acquire two mining hubs for a sum of $179 million. This acquisition expands their capacity by 390-megawatts, augmenting the existing 584-megawatt output. Riot Platforms has also been on the expansion trail, acquiring Bitcoin mining equipment worth $291 million. This purchase registers as the most significant hash rate increase in the company's history.
In 2023, Bitcoin experienced substantial growth, seeing a 163% increase since the start of the year. However, Bitcoin mining stocks, specifically Marathon Digital and Riot Platforms, have outperformed Bitcoin with respective year-to-date gains of 767% and 452%, as recorded by TradingView data.
The leading publicly traded crypto exchange, Coinbase, has also benefited from the tailwinds, recording a more than 450% increase since the beginning of 2023. Following the crash of FTX and other major disappointments in 2022, crypto-related stocks started off the year as desirable short trades. But traders who bet against the crypto market may find themselves out of luck as more than $6 billion worth of crypto-related shorts were liquidated throughout this year.
Published At
12/28/2023 4:53:39 AM
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