Last Updated: 14 August 2022
Crypto mining companies have finally had a good month after months of misery. Marathon Digital Holdings, the biggest riser, even grabbed a price gain of 124.12 percent over the past 30 days. This means that the company and several other large listed miners easily beat the price gains of bitcoin (18 percent) and ether (67.8 percent).
Major miners through the roof
Marathon Digital is not the only major miner whose shares have gone through the roof in the past 30 days. Core Scientific also recorded an impressive price gain of 110.39 percent. Not far behind, we find Hut 8 with 98.95 percent and Riot Blockchain with 96.69 percent. That does not alter the fact that the miners have had a dramatic period over the whole year.
Over the last 30 days, they have been catching up, but as of early 2022, Marathon Digital is 47.69 per cent in the red. Core Scientific’s situation is even more painful, with a minus of 70.41 per cent since 1 January 2022. Compared to the price loss of over 70 percent, the 2022 figures for bitcoin (-48.30 percent) and ether (-49.13 percent) are still quite reasonable.
Bitcoin production on the rise
The massive share price gains of the miners in question did not come completely out of the blue. For example, Core Scientific, reported a 1,601 percent increase in self-mined bitcoin from the beginning of 2022. Meanwhile, it has already managed to mine 6,567 bitcoins this year. Furthermore, Core Scientific’s second quarter revenue increased 118 percent last quarter compared to the same quarter in 2021.
Canada’s Hut 8 also has something to celebrate, as their bitcoin production increased 71 percent this quarter compared to the same period in 2021. In total, Hut 8 managed to extract as much as 946 bitcoin from the digital ground in the second quarter of 2022. Hut 8’s revenue increased by 30.7 percent compared to last year to $43.8 million (about 42.6 million euros).
Marathon Digital, which shared its results earlier this week, has also managed to boost bitcoin production this year. Last quarter marked an 8 per cent increase in production despite the “challenging macro environment.” With this, Marathon Digital accounted for 707 bitcoin produced this quarter.
Mining slightly more profitable again
As the bitcoin price fell in 2022, miners’ margins also came under significant pressure. The miners profitability plus the bitcoin’s price reached its provisional bottom in June. Meanwhile, profitability is on the rise again, and the industry is slowly but surely settling down.
It’s not just the lower bitcoin price that has hit miners’ profitability. Higher energy costs around the world have also hit the industry. In addition, a heat wave in Texas, a popular location for miners, and the conflict between Russia and Ukraine have not helped the industry.
In this respect, it is good to see that some major miners have made significant price gains in the last 30 days. After all, prices play an important role in the possible turnaround of sentiment. A few good months could mark the start of a new bull market.