Bitcoin Mining Stocks Double in a Month as BTC Production Increases

Shares of crypto mining companies have rallied 120% in the past month as crypto asset prices rebounded, mining profitability improved and Bitcoin (BTC) production surged.

Over the past 30 days, according to Yahoo Finance, shares of cryptocurrency mining firm Marathon Digital Holdings have risen 124.12 percent, Core Scientific has risen 110.39 percent, Hut 8 has risen 98.95 percent and Riot Blockchain has risen 96.69%, significantly surpassing the 18% increase of BTC and the 67.8% increase of ETH.

In its second-quarter earnings report on Thursday, Core Scientific reported that the number of self-mined bitcoins has grown by a staggering 1,601% this year to 6,567 bitcoins. Revenue in the second quarter rose 118% year-over-year to $164 million, driven primarily by growth in digital mining and hosting revenue.

Hut 8 Mining Corp. also saw an increase in the number of bitcoins it mined during the quarter, up 71% year-over-year to 946, due to “increased hashrate from other efficient miners” and increased activity at its Ontario mining site. Revenue also rose in the second quarter, rising 30.7% year-over-year to $43.8 million.

Marathon Digital reported its second-quarter earnings earlier this week, saying that despite a "challenging macro environment," Bitcoin production increased by 707 year-over-year, and Bitcoin production activity increased by 8%.

However, all three companies’ losses widened due to impairment losses on crypto assets.

Cryptocurrency prices have also climbed since the plunge in June and July, with key crypto assets including BTC and ETH up 18.0% and 67.8%, respectively.

Bitcoin mining profitability has also rebounded from yearly lows on June 19, according to Bitinfocharts.

Bitcoin mining profitability in the past 3 months Source: Bitinfocharts.com

In recent months, bitcoin mining companies have had to grapple with a range of factors affecting bitcoin production and profitability, including falling asset prices and rising energy costs, which were attributed in part to a heat wave in Texas Conflict with Russia and Ukraine.