Bitcoin Mining Stocks Experience Decline Amid Bitcoin Price Drop: What You Need to Know
The cryptocurrency market took a hit today as shares of Bitcoin mining stocks, including Marathon Digital Holdings Inc, Riot Platforms Inc, and CleanSpark Inc, traded lower amidst a drop in the price of Bitcoin. Bitcoin was down about 2.22% over a 24-hour period, hovering around $61,180 at the time of writing, as demand for Bitcoin ETFs continues to moderate.
The ARK 21Shares Bitcoin ETF experienced single-day net outflows of $31.34 million on Monday, while the Grayscale Bitcoin ETF saw outflows of $24.66 million. Additionally, Blackrock’s Bitcoin fund remained stagnant for the fourth consecutive session. This decrease in demand for Bitcoin ETFs may have contributed to the overall decline in the price of Bitcoin and mining stocks.
Furthermore, mining stocks may be facing additional selling pressure following worse-than-expected financial results from MicroStrategy Inc. The company reported a 5% year-over-year decrease in revenue to $115.2 million, missing the consensus estimate. Despite this, MicroStrategy purchased 25,250 Bitcoin in the quarter for a total cost of about $1.65 billion, holding a total of 214,400 Bitcoin as of April 26.
Looking ahead, Marathon Digital, Riot, and CleanSpark are all set to report earnings in the coming weeks. Riot is expected to report before the market opens on Wednesday, with the company expected to report a loss of 14 cents per share and revenue of $94.859 million. Marathon and CleanSpark will report after the market close on May 9, with earnings expectations of 22 cents per share on revenue of $180.69 million for Marathon, and 4 cents per share on revenue of $102.574 million for CleanSpark.
At the time of publication, Marathon shares were down 4.16% at $17.28, Riot was down 4.24% at $10.61, and CleanSpark shares were down 4.64% at $17.28. Investors will be closely watching these companies as they navigate the volatile cryptocurrency market.
