Bitcoin Mining Stocks Are Moving Higher Monday: What's Going On?

Zinger Key Points
  • Following several days of net outflows, spot bitcoin ETFs reversed the trend last week and saw net inflows.
  • Bitcoin mining stocks appear to be getting a lift from strength in the price of bitcoin.

Shares of several Bitcoin  mining stocks including Marathon Digital Holdings Inc MARARiot Platforms Inc RIOT and CleanSpark Inc CLSK are rising Monday amid strength in the price of Bitcoin. Here’s a look at what you need to know.

What To Know: Bitcoin mining stocks rallied alongside bitcoin and the broader crypto space at the start of the year as several spot Bitcoin ETFs were approved for trading, sparking increased demand for the world’s largest crypto.

Following bitcoin ETF approval, investors turned their attention to last month’s halving event. The halving is a programmed process in the bitcoin protocol that occurs every 210,000 blocks, or approximately every four years. Last month, the bitcoin network completed its fourth halving event, marking a significant reduction in the amount of rewards miners receive for successfully mining transactions. Miner rewards were reduced from 6.25 bitcoin to 3.125 bitcoin.

Mining stocks saw increased volatility leading up to the halving and have continued to be volatile since. It's worth noting that crypto markets have historically rallied in the months following a halving event.

Following several days of net outflows, spot bitcoin ETFs reversed the trend last week and saw net inflows of approximately $378 million on Friday as bitcoin bounced off of recent lows and began moving higher.

Marathon Digital engages in mining digital assets and focuses on the Bitcoin ecosystem. The stock was up 4.74% at $18.35 at publication time. 

Riot Blockchain is focused on building, supporting and operating blockchain technologies with a vision to become the leading Bitcoin-driven infrastructure platform. Shares were up 1.92% at $10.60 Monday morning.

CleanSpark is an energy company that transitioned its expertise to focus on Bitcoin mining in 2020. CleanSpark shares were up 2.41% at $16.53 at the time of publication.

Check This Out: Bitcoin At A Reversal Point? Trader Sees These 3 ‘Key Areas Of Interest’

$BTC Price Action: Bitcoin was up 0.59% over a 24-hour period at $63,905 at the time of publication, according to Benzinga Pro.

Photo: 15958319 from Pixabay.

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsMoverswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!