Bitcoin mining stocks have bounced back this year, with many leading players experiencing a significant increase in their stock prices after a challenging 2022.
As per BTC mining specialist Jaran Mellerud, around 20 of the top mining companies have witnessed their stock prices double or even more in 2023.
In fact, the mining firms have outperformed Bitcoin and even surpassed the leading tech stocks.
On April 18, Mellerud compiled a list of the mining industry’s top performers of the year.
Bitcoin mining stocks gained significantly in 2023
Bitcoin mining stocks have witnessed massive gains in 2023, with Core Scientific leading the way with an impressive 455% increase in stock value. The analyst attributed the surge to the company’s substantial debt, which has provided a boost to its equity during the bullish market environment of 2023. Additionally, improvements in mining economics have positively affected Core Scientific’s cash flows relative to equity, though disproportionately so.
Other mining firms such as Digihost, Cipher, Riot, Iris Energy, and Marathon have also experienced significant gains ranging from 237% to 378%. Interestingly, these companies have low debt levels relative to equity and are less financially leveraged than Core Scientific.
According to Mellerud, the outperformance of these mining stocks is likely due to company-specific factors, as they have all delivered solid monthly operational updates that have exceeded expectations this quarter. Bit Digital, Bitfarms, Cathedra, Hive Blockchain, and Hut 8 have also witnessed notable increases in stock value, ranging from 142% to 213%.
Notably, the 20 mining companies have outperformed Bitcoin, which has risen by 80% since the beginning of the year. The analyst predicts that if the BTC price increases by an additional 40% to reach $42,000 this year, most mining stocks would rise by more than 50% from their current levels, while the four-to-five biggest gainers could potentially soar by more than 150%.
Tech stocks lagged behind in performance
Tech stocks fall behind in comparison as the tech-heavy NASDAQ 100 Index has only gained 20% so far this year, according to MarketWatch.
Alphabet, the world’s leading search company, has only managed a meager 17% increase in stock value this year, while software giant Microsoft has seen a mere 20% rise since New Year’s Day.
On the other hand, the world’s largest tech corporation, Apple, has witnessed a 33% surge in share prices in 2023.
Gold prices, which are often considered a safe haven investment, have only slightly increased by 9% this year.
Even Coinbase stock (COIN) has doubled in price since the start of the year, indicating a significant resurgence of the crypto narrative in 2023. However, it remains to be seen whether this trend can be sustained throughout the year.