Shares of leading publicly traded Bitcoin (BTC) miners fell this week as the oldest cryptocurrency continued its slide, falling below the important $90,000 mark. Widening net losses and increased competition saw the worst-performing stocks lose nearly 30% in a single day.
Sector leaders also failed to escape the negative dynamics: the index tracking the stock prices of BTC miners fell to its lowest level since September 2024.
Bitcoin Miners' Net Losses on Wall Street Are Widening
Shares of Cipher Mining Inc. (NASDAQ: CIFR) fell despite reporting fourth-quarter net income of $18 million, or $0.05 per diluted share. The company reported adjusted profit of $51 million, or $0.14 per diluted share, but investors appeared more focused on long-term profitability concerns as Bitcoin price swings continue to weigh on the economics of mining.
Tyler Page, CEO of Ciper Mining
“The fourth quarter was an extremely productive quarter for us at Cipher as we continued to successfully execute on our growth and expansion plans,” said Tyler Page, CEO of Cipher Mining, highlighting the company’s hashrate increase to approximately 13.5 EH/s following the upgrade of its equipment in Odessa.
However, what shareholders are most interested in is the bottom line, which was worse than last year. The loss widened to almost $45 million, exceeding the just under $26 million reported a year ago.
Meanwhile, Bitdeer Technologies Group (NASDAQ: BTDR) saw a sharper decline after posting disappointing data. The Singapore-based blockchain and high-performance computing company reported a steep net loss of $599.2 million for the full year of 2024, down from $56.7 million. Total revenue fell to $349.8 million from $368.5 million year-over-year.
Matt Kong, Chief Commercial Officer, Bitdeer
“Over the past year, we strategically focused resources on developing our own ASIC technology, which temporarily limited the growth of our computing power and impacted our financial results,” commented Matt Kong, Chief Commercial Officer at Bitdeer.
Wall Street Reacts to Declining Miner Revenues and Bitcoin Prices
In a sharp investor reaction, Bitdeer shares fell 29% on the Nasdaq during Tuesday's session, closing at $9.26 and testing three-month lows. Cipher Mining fell more than 17% in response to the latest report, falling to $4.10 and hitting a four-month low.
BITDR, CIFR and BTC price. Source: Tradingview.com
The downturn affected the entire sector, not just companies reporting new financial results. A prime example is MARA (NASDAQ: MARA), the largest publicly traded mining company on Wall Street by market capitalization, whose shares fell 11% to $12.42, their lowest since November 2023.
Among the stocks that saw the biggest declines were Canaan (NASDAQ: CAN), which fell 17% to $1.29, and IREN (NASDAQ: IREN), which fell 13.6% to $8.78.
The negative sentiment was fueled in part by a sharp two-day slide in Bitcoin, which closed well below $90,000 on Tuesday, briefly testing levels closer to $86,000 — the lowest since November.
Hashrate's index of Bitcoin mining stocks also fell significantly, reaching levels not seen in five months.
Source: Hashrate Index
A prime example is Riot Platforms (NASDAQ: RIOT), which also reported financial results this week. The company reported record revenue of nearly $377 million and net income of $109 million. Despite these strong numbers, shareholders were more focused on Bitcoin’s performance, sending shares to multi-month lows.
This highlights that for many investors, mining stocks remain an indirect way to gain exposure to Bitcoin on regulated exchanges, as their prices are closely tied to Bitcoin's performance.
Source: cryptonews.net
