HUT - Why Crypto Mining Stocks Got Crushed Today
Shares of crypto mining stocks got absolutely crushed in trading on Monday as the prices of cryptocurrencies dropped. The most notable decline came from Bitcoin (CRYPTO: BTC) , which was down 16.4% over the last 24 hours as of 3 p.m. ET and has during that period been at levels below $23,000.
On the mining side, Bitfarms (NASDAQ: BITF) fell by as much as 15.7% Monday, Hut 8 Mining (NASDAQ: HUT) dropped 17%, Bit Digital (NASDAQ: BTBT) was down as much as 15.5%, Canaan (NASDAQ: CAN) dropped 14.5%, and Riot Blockchain (NASDAQ: RIOT) was down 15.7%. Each of these stocks had recovered slightly near the end of trading, but all were down by double-digit percentages for the day.
Cryptocurrency miners generate tokens as revenue, so the dropping value of those cryptocurrencies will ultimately mean less money for them. But to make matters worse, most of these companies carry significant amounts of the Bitcoin that they've mined on their balance sheets. Its decline is taking a big bite out of the value of the assets they hold .
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Why Crypto Mining Stocks Got Crushed Today