• Bitcoin mining companies are exhibiting resilience amidst the recent market downturn, with some showing gains despite Bitcoin being down 4.5%.
• Silvergate Capital’s liquidation on March 2-3 has resulted in a decrease of $51 billion in the crypto market cap.
• Despite this, several mining stocks have seen positive returns including Iris Energy Limited (6.43%), Bitfarms Ltd (1.68%), Hut 8 (3.25%), and Marathon Digital Holdings Inc (7.46%).
Bitcoin Mining Companies Defy Market Trend with Positive Gains
The cryptocurrency market experienced a significant downturn on March 2 to 3 following news of Silvergate Capital’s liquidations, resulting in a decrease of $51 billion in the crypto market cap. However, amidst this bearish trend Bitcoin mining companies have demonstrated resilience; some even saw positive gains while BTC was down by 4.5%.
Mining Stocks Show Resilience Amidst Market Downturn
Notable mining stocks that rose against the downturn include Iris Energy Limited (6.43%), Bitfarms Ltd (1.68%), Hut 8 (3.25%), Bit Digital Inc. (2.50%), Marathon Digital Holdings Inc (7.46%) HIVE Blockchain Technologies Ltd (0.74%) Riot Platforms Inc (6.53%) Stronghold Digital Mining Inc (-0.02%) and CleanSpark Inc (3.43%).
What is Bitcoin Mining?
Bitcoin mining involves solving complex mathematical equations to validate transactions on the blockchain and also create new coins through a process called ‚mining‘. It is rewarded for its efforts with newly minted Bitcoin tokens and transaction fees from users who use it for digital purchases or transfers of funds across borders without relying on third parties such as banks or governments to facilitate them as they would do traditionally..
Why Are Mining Companies Doing Better than Bitcoin?
This could be partially attributed to the fact that cryptocurrencies still remain volatile assets and are thus prone to short-term swings which could be leveraged by long-term investors who may be holding positions in these companies‘ stocks rather than just buying into Bitcoin itself directly as an asset class – allowing them to benefit from both its upsides and downsides over time instead of just one side of it at any given moment..
In summary, despite recent market volatility, many bitcoin mining companies have been able to demonstrate resilience with some seeing positive returns – highlighting their potential as long term investments for those willing to take on riskier assets due their inherent volatility but also rewards potentially associated with them too if managed correctly over time