Bitcoin Miners Underperform Compared to Bitcoin Prices
Bitcoin rose 21.5% from August 17 to 21, but six out of seven major mining companies listed in the U.S. performed poorly. MARA increased by 16.1%, while Cipher fell by 14.8%, TeraWulf dropped by 11.2%, and Hut 8 decreased by 8.1%. During this period, QQQ fell by 2.3%, placing these companies in a weak tech stock market. Some companies' reported revenues and contracts reflect this change. TeraWulf generated $31.9 million in revenue through high-performance computing leasing in the second quarter, with total revenue of $44.8 million. Hut 8's Beacon Point leasing covers 949 megawatts of contracted IT capacity. Riot Platforms reported total quarterly revenue of $174.2 million, with $113.7 million from mining, $23.2 million from data centers, and $37.3 million from engineering services. IREN's AI cloud revenue was $70.5 million, while Bitcoin mining revenue was $66.7 million. Analysis shows that most companies' sensitivity to Bitcoin has weakened, with current correlations to QQQ exceeding those with Bitcoin. MARA maintains the highest correlation with Bitcoin, reflecting its dependence on mining activities. These companies are no longer merely amplifying the Bitcoin price; the rise in computing contracts, capacity delivery, and data center revenues is beginning to influence stock pricing.
-- Price
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