Crypto mining stocks are enjoying a rally on Thursday as bitcoin maintains its bullish momentum above $26,000. The leading cryptocurrency has gained over 10% in the past week, defying the bearish pressure from central banks and regulators.
Among the top performers are Marathon Digital Holdings (MARA), Hut 8 Mining (HUT), CleanSpark (CLSK), Hive Blockchain Technologies (HIVE) and Riot Blockchain (RIOT). These stocks have risen by double-digit percentages in the past 24 hours, outperforming the broader market.
The surge in crypto mining stocks reflects the growing demand for bitcoin and other cryptocurrencies, as well as the increasing profitability of the mining industry. According to data from Bitinfocharts, the average revenue per terahash per second (TH/s) of bitcoin mining has increased by over 40% since June, reaching $0.32 on Thursday.
Crypto mining stocks are also benefiting from the recent shift in the global mining landscape, as China’s crackdown on the sector has reduced the competition and increased the opportunities for miners in other regions. According to the Cambridge Bitcoin Electricity Consumption Index, China’s share of the global bitcoin mining hash rate has dropped from over 65% in April to less than 40% in July.
As more miners relocate to North America and Europe, crypto mining stocks are expected to see further growth and expansion. For instance, Hut 8 Mining recently announced that it has relocated 6,400 bitcoin mining rigs from China to Alberta, Canada, where it plans to leverage its partnership with power utility Validus Power to access cheap and renewable energy sources.
Sources: MSN, Bitinfocharts, Cambridge Bitcoin Electricity Consumption Index, GlobeNewswire
