Despite Bitcoin’s surge, mining stocks struggle to match gains in 2024
Despite Bitcoin's 113% return in 2024 as of December 24, mining stocks have largely struggled, with many concluding the year in decline. Among 25 listed miners tracked, only seven, including Bitdeer and Core Scientific, have shown gains, while some, like Argo Blockchain and Sphere 3D, have seen significant losses of up to 84%. The year has been challenging for miners due to Bitcoin's halving event in April, cutting mining rewards from 6.25 BTC to 3.125 BTC and causing revenue to drop from over $100 million to $42 million by late December. Additionally, the difficulty of mining has increased substantially, exacerbating rising operational costs. To counteract financial pressures, many mining firms turned to capital markets for funding, raising over $2.2 billion in stock offerings through the year. Some companies have even diversified into sectors like AI computing to boost revenue streams, adapting to the evolving market landscape.
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