Bitcoin Mining Stocks Slide as Bitcoin Price Drops – What Investors Need to Know
Bitcoin Mining Stocks Slide as Bitcoin Price Drops
Shares of Bitcoin mining stocks, including Marathon Digital Holdings Inc (NASDAQ: MARA), Riot Platforms Inc (NASDAQ: RIOT), and CleanSpark Inc (NASDAQ: CLSK), are trading lower on Tuesday as the price of Bitcoin experiences a decline.
Bitcoin is down about 2.22% over a 24-hour period, hovering around $61,180 at the time of writing. The drop in price comes as demand for Bitcoin ETFs moderates, with the ARK 21Shares Bitcoin ETF experiencing net outflows of $31.34 million on Monday.
Additionally, mining stocks may be facing selling pressure following disappointing financial results from MicroStrategy Inc (NASDAQ: MSTR). MicroStrategy reported a 5% year-over-year decrease in revenue, missing estimates, and a quarterly loss of $3.09 per share. Despite this, the company purchased 25,250 Bitcoin in the quarter for a total cost of about $1.65 billion.
Looking ahead, Marathon, Riot, and CleanSpark are all set to report earnings in the coming weeks. Riot is expected to report before the market opens on Wednesday, with Marathon and CleanSpark reporting after the market close on May 9.
At the time of publication, Marathon shares were down 4.16% at $17.28, Riot was down 4.24% at $10.61, and CleanSpark shares were down 4.64% at $17.28.
Investors will be closely watching the performance of these mining stocks as they navigate the volatile cryptocurrency market.
