Top 3 Crypto Mining Giants Surge, Adding $8.68 Billion to Stock Values in 2023

A cluster of stocks centered around cryptocurrencies has experienced significant price surges over the past year. According to Stocklytics.com, the crypto-focused companies – Marathon Digital Holdings Inc., Riot Platforms Inc., and Cipher Mining Inc. have collectively added $8.68B to their stock value.

Marathon Digital has surpassed 112 million shares in trading volume, outperforming blue-chip stocks like Tesla, Apple, and Amazon.

Additionally, Bitcoin miner Riot Platforms ranks the 13th most actively traded stock on the chart, with a trading volume exceeding 40 million shares in the last day.

Stocklytics finance analyst Edith Reads commented on the data:

The increase in trading volume for Bitcoin mining stocks coincides with a renewed effort from mining companies to broaden their operations in anticipation of the potential approval of a spot Bitcoin exchange-traded fund (ETF) in early January, along with the upcoming Bitcoin halving in April.

Stocklytics Financial Analyst, Edith Reads

Shares in Marathon Digital Are the Most Traded

Crypto skeptics had taken short positions against companies such as Riot Platforms,  Cipher Mining Inc., and Marathon Digital. The surge in these firms’ stocks could be attributed to investors compelled to buy to cover their positions and new long positions initiated by investors seeking to capitalize on the thriving crypto market.

On December 19, Marathon unveiled intentions to acquire two mining centres at $179 million. This strategic move will increase its mining capacity by an additional 390 megawatts, supplementing its existing output of 584 megawatts.

On the other hand, Riot Platforms also secured an additional $291 million in Bitcoin mining rigs a fortnight ago. This marked the most substantial boost in the firm’s hash rate to date. 

Despite Bitcoin experiencing remarkable growth throughout 2023, with an increase of over 160% since the year’s commencement, shares in Bitcoin miners have notably outperformed those of the leading cryptocurrencies in the market.

Crypto-Related Stocks Beat Magnificent 7 Tech Returns 

The Magnificent 7 includes some of the most significant mega-cap tech firms: Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), Meta Platforms Inc. (META), Google parent Alphabet Inc. (GOOGL), Tesla Inc. (TSLA), and Nvidia Corp. (NVDA).

These companies have been acknowledged for buoying the markets this year by leveraging the increasing interest in generative artificial intelligence (AI) and large language models (LLMs). Yet, none of the Magnificent 7 stocks have matched the performance of the three crypto-focused firms.

Crypto Shorts Face Unanticipated Challenges 

Still recovering from the downfall of FTX and various other prominent meltdowns in 2022, stocks associated with cryptocurrencies started the year as a favored choice for short trades.

However, those aiming to bet against the crypto sector may have encountered unexpected challenges. Over $6 billion worth of crypto-related shorts have been liquidated thus far this year.