Bitcoin’s Drop To $93K Drags BTC Mining Stocks: Retail Sentiment Remains Frosty
By Stocktwits Inc | First Published Dec 30, 2024, 8:21 PM ISTShares of Bitcoin mining stocks have not been able to match Bitcoin’s gains this year. In fact, the two biggest companies have actually lost value so far in 2024.
Shares of the top Bitcoin mining stocks were down as markets opened on Monday after Bitcoin’s price slipped to $93,000 over the weekend.
The world’s largest cryptocurrency failed to recover lost ground from its all-time high of over $108,000.
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Amid the holiday season, last week’s hawkish Federal Reserve policy has kept macroeconomic sentiment on edge.
Analysts believe that a drop below $92,000 could pave the way for further declines toward $85,000, according to CoinTelegraph, putting pressure on Bitcoin mining stocks.
Here’s how the top Bitcoin mining stocks tumbled along with Bitcoin’s value on Monday, as the year comes to a close:
Shares of Mara Digital Holdings Inc. (MARA) were down nearly 3% as markets opened on Monday, after a 4.5% drop on Friday, as Bitcoin struggled to rise over the weekend.
On Stocktwits, retail sentiment around the ticker remained ‘neutral’ amid ‘low’ chatter due to the holiday season.
Investors on the platform speculated that the stock was probably down due to the holiday lull and would rise again once the new year kicked in.
MARA is currently the second largest corporate holder of Bitcoin, with 44,394 BTC in its coffers, valued at around $4 billion. That’s two-thirds of the company’s market capitalization of $6.2 billion.
Despite Bitcoin nearly doubling in value this year, MARA’s shares are down nearly 20%. The Bitcoin miner saw its mining returns drop after the halving event in April.
Meanwhile, shares of Riot Platforms Inc. (RIOT) was the worst hit among the three, with its shares down nearly 5.9% in early morning trading on Monday after a loss of 4.85% on Friday.
Sentiment around the company on Stocktwits trended in the ‘bearish’ zone with ‘low’ levels of chatter.
As with MARA, some users on Riot’s feed anticipate that institutions are using the opportunity to ‘buy the dip’ and ‘load up’ before the next bull run.
Riot is the third largest corporate holder of Bitcoin, trailing MARA by a wide margin with BTC holdings of 17,429 valued at $1.6 billion.
Riot has also faced pressure this year due to the Bitcoin halving, with its stock down nearly 30% despite the uptick in Bitcoin’s price over the same period.
Shares of the Canadian Bitcoin Miner Hut 8 Corp slipped over 4.4% as markets opened on Monday, after already registering losses of 6.57% on Friday.
On Stocktwits, retail sentiment remained ‘bearish’ amid ‘low’ message volumes as one user pointed out that Bitcoin mining stocks are set to lose value regardless of whether Bitcoin’s price goes up or down.
Hut 8 has 10,096 Bitcoin in its treasury, valued at around $935 million.
Even though it has less Bitcoin in its coffers than MARA and Riot, the stock has performed much better than its counterparts. While Hut 8’s shares haven’t delivered returns at par with Bitcoin, the stock is up 77% year-to-date.
Despite the recent pullback, Bitcoin remains up 120% for the year, driven by optimism over potential digital currency backing from the incoming Trump administration.
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