- BTC mining firms are recording yearly turnovers of more than 148%.
- On the other hand, BTC is only witnessing around 84%.
Since Bitcoin is a proof-of-work protocol, there’s a lot of mining in this network. However, mining looks like an unproductive business during the crypto bear market. So, this is currently not the case, with Bitcoin mining firms recording massive turnovers.
Bitcoin Miners Outpace Bitcoin Despite Bear Market
- Bitcoin mining is often a challenging venture when the crypto market is experiencing a full-blown bear market. So, the year-to-date returns of all mining stocks, except for two, continue to outpace Bitcoin all year long. This is quite a huge statement of how diverse and evolving the crypto market is. So, besides Argo Blockchain and TeraWulf, many of the other Bitcoin miners are making a lot of profit from the mining sector. According to data, the average return of the top eleven public mining companies this year is more than double that of Bitcoin. So, it is currently standing at a whopping 148.59%, which is more than Bitcoin’s 84.61%.
- Marathon Digital Holdings and Cipher Mining are the top-performing Bitcoin mining firms. So, these two firms have a massive increase of 120.67% and 356.00% year-to-date gains, respectively. Conclusively, mining stocks are exhibiting a higher beta over Bitcoin. Now, the next question is, what is higher beta?
- A higher better is simply the increase in volatility and a tendency to move with a greater magnitude in the same direction as the market. Apparently, this is what is happening to these Bitcoin mining firms against BTC.
Bitcoin Ordinals Among the Major Contributors of the Success
- Within 2023, the Bitcoin Ordinals was one of the things bringing fresh hope and hype around Bitcoin. So, one of the things leading to the success of Bitcoin miners was the advent of the Bitcoin Ordinals. Ordinals are basically digital files, forming an integration with something of an NFT market on the Bitcoin blockchain.
- Rich Rines, an initial contributor to Core DAO, while speaking to the press, said Bitcoin Ordinals played a major role in the mining success. So, according to him, the new use cases such as Ordinals inscriptions and BRC-20 tokens are increasing the profitability of BTC mining. Charles Edwards, the founder of Captriole Investments, added that even the increase in hash rate will lead to success.
BTC Miners Selling a Large Part of Their Cryptocurrencies
- One of the most noticeable occurrences in the crypto market is BTC miners selling a large part of their Bitcoin. So, according to Power’s report, they are doing this in preparation for the halving event.
- According to predictions from CoinWarz, there are expectations the halving will happen in April 2024.
- In conclusion, despite the bear market in the large part of 2023, Bitcoin mining firms are doing fairly well. So, the amount of their turnovers in comparison to Bitcoin itself is quite massive. There’s a yearly turnover of more than 148% for BTC mining.
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