Arcane Research: Shares of mining companies have fallen by 50% – Bits Media

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Arcane Research: Акции майнинговых компаний с начала года упали на 50% - Bits Media

Arcane Research agency analysts believe, that against the background of the fall of the Bitcoin market and the growth of hashrate, mining companies have reduced BTC production volumes.

Analyst Jaran Mellerud (Jaran Mellerud) He reported on Twitter, that the shares of the five largest mining companies by market capitalization companies are falling - since the beginning of the year, the losses of these giants amounted to more than 50%.

Arcane Research expert clarified, that the mining company Riot Blockchain suffered the most from Bitcoin volatility. Its losses since the beginning of the year amounted to 65%. Competitors are not far behind. Hut8 shares fell by 63%, а Marathon Digital Holdings на 62%.

Arcane Research: Shares of mining companies have fallen by 50% - Bits Media

Mellerud sees the reason for the miners' losses as, that most companies, engaged in cryptocurrency mining, own bitcoins, And that means, that they are largely influenced by the price of BTC. Arcane Research analyst noted, that the fall of Bitcoin led to a decrease in the income of mining companies and could cause a decrease in global hashrate. However this did not happen. On the contrary, now in 2022 year there is a new historical maximum in Bitcoin hashrate. Mellerud believes, that the fall in BTC and the rise in global hashrate forced companies to mine fewer bitcoins:

“Most of these companies did not increase their hashrate that quickly, as investors hoped. Therefore investors, perhaps, adjusted our assumptions about the growth of these companies to more conservative ones".

In May, the American mining company Marathon Digital recorded an increase in revenue in the first quarter 2022 of the year. However, large-scale investments in development and the depreciation of BTC led to losses in $13 million. However, Arcane Research announced in March, that large mining companies have significantly increased the rate of Bitcoin accumulation. In April, the American mining company Riot Blockchain announced plans for a large-scale expansion of capacity in Navarro County., Texas.