- Hive Blockchain, Cipher Mining, and Riot Platform have done well this year.
- The same is true with other Hut 8 Mining and Marathon Digital.
- These stocks are waiting for the next Bitcoin price move.
Hive Blockchain and Riot Platform stock prices held steady as Bitcoin remained above $30,000. Hive shares jumped to $5, the highest level since September 12th last year. It has soared by more than 262% from the lowest level in December last year.
Riot, on the other hand, jumped to a high of $13.55, the highest point since April 18. It has jumped by more than 310% from its lowest point in December. Similarly, Cipher Mining share price jumped to $3.15, ~753% above the lowest point in December.
The same is true for Hut 8 Mining, whose shares have soared to August last year’s high. The only laggard is Argo Blockchain whose shares have only risen moderately this year.
Bitcoin mining and BTC prices correlation
Hive Blockchain, Riot Platforms, Hut 8 Mining, and Marathon Digital are the biggest Bitcoin mining companies in the world. These companies invest in equipment and technology and then run huge mining firms.
They all make money by selling their mined Bitcoins to exchanges and other interested parties. Also, some hold Bitcoin in their balance sheets and benefit as the coin’s price rallies.
Therefore, historically, these companies tend to do well when Bitcoin price is rising since it leads to higher margins. The same applies to other mining companies like Glencore, Anglo American, and Rio Tinto.
This explains why Bitcoin mining companies are doing well this year since Bitcoin price has surged by over 90%. It also explains why some mining companies like Argo Blockchain came on the verge of collapsing in 2022 as BTC plunged.
Most analysts believe that these companies will publish strong second-quarter results. Last week, Hive Blockchain said that its revenue did better than expected in the last quarter. Its revenue came in at $18.2 million from $14.3 million in the previous quarter.
Waiting for the next Bitcoin price move
The next catalyst for these Bitcoin mining stocks will be the price action of BTC. As shown above, Bitcoin price has remained above the important resistance level at $30,000.
In an article I did on Tuesday, I noted that Bitcoin has formed a bullish flag pattern, which tends to be a bullish sign. It has also formed what looks like a cup and handle pattern, a sign of a bullish continuation.
However, I also warned that the C&H pattern can be interpreted as a double-top. Therefore, more Bitcoin upside will be confirmed if the coin moves above the upper side of the flag at $31,400. If this happens, mining stocks like Hive Blockchain, Marathon Digital. Riot Platform and Argo Blockchain will continue rising.
