Research by the Bitcoin mining analytics platform Hashrate Index reveals that Bitcoin mining stocks have outperformed Bitcoin’s price on a year-to-date (YTD) study. The achievement comes despite a massive bloodbath faced by the Bitcoin mining industry in the past year.
Bitcoin Mining Stocks Outperform BTC
Bitcoin has started recovering from a bearish season that plagued the crypto industry last year. The asset soared from a price range of $20,000 to above $30,000. This represented a 79% year-to-date price surge.
The outstanding performance rubbed off on the Bitcoin mining industry as the stocks of major indexes began soaring. Hashrate Index noted that “these stocks are heavily correlated with Bitcoin.”
Source: Hashrate Index
As shown in the chart above, 20 out of 23 Bitcoin mining stock indexes overtook Bitcoin’s price. Interestingly, all the indexes outperformed the stock of the American stock exchange giant Nasdaq, which saw a 20% increase from YTD.
How the Bitcoin Mining Business is Fairing
The Bitcoin mining industry was one of the sectors that took the biggest blow at the time of the crypto bearish season. With the depreciating price of Bitcoin and soaring electricity tariffs, several companies in the industry went bankrupt.
Core Scientific, for example, began selling its mined BTC last July due to financial pressures. In October, the company secured a $72 million loan to avoid bankruptcy. The effort did little to help its financial condition. In December, the mining firm filed for bankruptcy.
In the latest report, however, the company appears to be recovering gradually, as its stock index (CORZQ) sat at the leading position ahead of BTC with a whopping 455% YTD increase. Indexes for other mining firms like Digihost, Cipher, Riot, and others, also saw outstanding performance.
The latest increase in the Bitcoin mining industry is not entirely surprising, as some mining firms are now honing the Bitcoin uptrend to boost their financial status. CleanSpark, for example, increased its hashing power by purchasing $144 million worth of mining machines. Cathedra Bitcoin, another mining company, also reported a healthy hash rate as it reenters HODL mode.
