Wall Street Bitcoin Miner's Stocks Collapse as BTC Price Slips Below $90K
Shares of major publicly listed Bitcoin (BTC) mining companies tumbled this week as the oldest cryptocurrency continued its retreat below the critical $90,000 threshold. Widening net losses and increasing competition led...
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Shares of major publicly listed Bitcoin (BTC) mining companies tumbled this week as the oldest cryptocurrency continued its retreat below the critical $90,000 threshold. Widening net losses and increasing competition led the worst-performing stock to lose nearly 30% in a single day.
Industry leaders were also unable to resist the negative trend, as the index tracking the condition of BTC mining stocks dropped to its lowest levels since September 2024.
Wall Street Bitcoin Miners Net Losses Intensify
Cipher Mining Inc. (NASDAQ: CIFR) shares declined despite reporting fourth-quarter net earnings of $18 million, or $0.05 per diluted share. The company's adjusted earnings reached $51 million ($0.14 per diluted share), but investors appeared more focused on longer-term concerns about profitability as Bitcoin's price fluctuations continue to impact mining economics.
“We had an extremely productive fourth quarter at Cipher, as we continued the on-time execution of our growth and expansion plans,” said Tyler Page, CEO of Cipher Mining, highlighting the company's increased hashrate to approximately 13.5 EH/s following upgrades to its Odessa fleet.
However, the net result interests shareholders the most, which turned out to be worse than last year. The loss deepened to nearly $45 million, up from just under $26 million reported a year earlier.
Meanwhile, Bitdeer Technologies Group (NASDAQ: BTDR) faced steeper declines after reporting more disappointing numbers. The Singapore-based blockchain and high-performance computing company posted a substantial net loss of $599.2 million for 2024, compared to $56,7 million. Total revenue dropped to $349.8 million from $368.5 million year-over-year.
“Last year, we strategically prioritized resources to the development of our proprietary ASIC technology, which temporarily limited our hashrate growth and impacted our financial performance,” Matt Kong, Chief Business Officer at Bitdeer, commented.
Wall Street Reacts with Declines to Miners' Earnings and Bitcoin Price
In stark investors' reaction, Bitdeer shares dropped 29% on Nasdaq during Tuesday’s session, closing at $9.26 and testing their lowest levels in three months. Cipher Mining fell more than 17% in response to its latest report, declining to $4.10 and reaching a four-month low.
The decline extended across the entire sector, not just companies releasing new financial results. A notable example is MARA (NASDAQ: MARA), the largest publicly traded miner on Wall Street by market cap, whose shares fell 11% to $12.42, their lowest since November 2023.
Among the steepest decliners were Canaan (NASDAQ: CAN), which dropped 17% to $1.29, and IREN (NASDAQ: IREN), down 13.6% to $8.78.
The negative sentiment was fueled in part by Bitcoin’s sharp two-day decline. On Tuesday, its price closed well below $90,000, briefly testing levels closer to $86,000—the lowest since November.
The Bitcoin Mining Stock Index, provided by Hashrate, also saw a steep drop, sliding to levels not seen in five months.
A notable example is Riot Platforms (NASDAQ: RIOT), which also released its financial results this week. The company reported record revenue of nearly $377 million and a net income of $109 million. Despite these strong numbers, shareholders focused more on Bitcoin’s performance, leading the stock to drop to multi-month lows.
This highlights that, for many investors, mining stocks remain an indirect way to gain exposure to Bitcoin on regulated exchanges, with their prices closely tracking Bitcoin’s movements.
This article was written by Damian Chmiel at www.financemagnates.com.Why this matters
This mining story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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