The Current State Of Public Bitcoin Mining

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Public Miner Equities Versus Bitcoin

As for most risk-on assets, including bitcoin and public bitcoin mining equities, the drawdowns from all-time highs have been substantial. As bitcoin has fallen 41.20% from its November all-time high, the entire bitcoin mining industry has performed much worse, facing an average drawdown of 64.10%. Public bitcoin miner stocks have acted as additional investment vehicles for indirect bitcoin exposure with opportunity for outperforming bitcoin over the last few years — at least until the market shifted in November 2021.

The trend of falling hash price will force weaker miners to unplug, find more efficient energy sources and/or sell off machines or bitcoin holdings.

Year-to-date performance of public miner stocks

Apart from pricing miners in USD terms, how well do they perform priced in bitcoin? Those using bitcoin as a unit of account will naturally look for opportunities that will outpace bitcoin in an attempt to grow their overall bitcoin position and share of a limited supply. With the latest drawdowns, bitcoin miners are starting to look relatively cheap when priced in BTC terms, as many of these stocks are nearing or making new 12-month lows.

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