Bitcoin and Crypto Mining Stock Performance
Several U.S.-based crypto mining stocks, including Hut 8, CleanSpark, Riot Platforms, and Marathon Digital Holdings, are experiencing declines in their stock prices due to Bitcoin’s weakness. Hut 8 is down 11.2% to $12.34 a share, CleanSpark is down 11.35% to $13.35 a share, Riot Platforms is down 8.8% to $8.50, and Marathon Digital Holdings is down 3.3% to $17.48. Marathon Digital Holdings disclosed in its Q2 financial report that it sold over 50% of the Bitcoin it mined to cover operating costs.
Market Downturn Impacting Tech Stocks
The recent drop in stock prices for crypto mining companies coincides with a downturn in the Nasdaq and Dow Jones Industrial Average. The Nasdaq is down 2.5% as tech stocks face a sell-off driven by concerns over inflated valuations. Other crypto-related stocks, such as Coinbase, Microstrategy, and Paypal, are also down 4-5%.
Bitcoin’s Decline and Market Volatility
Bitcoin and other major digital assets are experiencing losses amid fears surrounding Genesis Trading’s financial stability. Bitcoin has fallen 10% in the last five days, hovering below $63,000. Factors contributing to market volatility include the recent sale of BTC by the German government, distributions from bankrupt exchange Genesis Trading, and impending sales from the U.S. government’s BTC stash, leading to supply disruptions in the crypto market.
