Bitcoin Mining Stocks Shed $3.5b in Market Cap Amid 17% Plunge
The market capitalization of a dozen major US-listed bitcoin mining companies is experiencing a significant decline amid a broader slump in the US equity market on Monday.
As of July 31, the combined market cap of Bitdeer, Bit Digital (NASDAQ: BTBT), Bitfarms, Cipher, CleanSpark, Core Scientific (NASDAQ: CORZ), HIVE, Hut 8 (NASDAQ: HUT), Iris Energy, Marathon, Riot, and Terawulf stood at $23.5 billion.
However, by Friday, this figure had already dropped by over 10% to $20.3 billion, reflecting a substantial decrease in market value.
On Monday, the situation worsened as these stocks opened with an average plunge of over 15%, following a decline in bitcoin’s market value, which also sent bitcoin’s hashprice to new record lows. Their combined market cap plunged by 17% to $16.8 billion as of publishing on Monday and shed 28.5% since the beginning of August,
The decline in mining stocks’ value follows a period of broader market volatility, which has seen equity prices fall across various sectors.
Per the Wall Street Journal, a global market selloff intensified on Monday with Japan’s Nikkei 255 dropping by over 12%. Tech shares on the Nasdaq are also down significantly with Nvidia, Apple, and Tesla losing 9%, 5%, and 6% as of writing, respectively.
