Bitcoin mining giants lost $2.8 billion in market capitalization
Date: 2023-08-24 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
The top five cryptocurrency mining companies collectively lost $2.8 billion of their market capitalization following the Bitcoin (BTC) sudden crash last Thursday.
AltIndex data shows a 30% decline over the last month among known BTC miners. This group, made up of Riot Blockchain, Marathon Digital Holdings, Canaan Inc., Hut 8 Mining, and Cipher Mining Technologies, saw their combined market capitalization drop to around $6.7 billion from the $9.5 billion recorded in July.
Market capitalization of bitcoin miners
Hut 8 and Cipher experienced the most significant percentage declines, losing 32%, equivalent to more than $400 million in their market capitalization, respectively. Meanwhile, Riot Blockchain led the losses in monetary terms, with a 31% drop to $1.08 billion.
Marathon Digital Holdings, the second largest crypto miner in the world, also showed no mercy as it declined by 25%, resulting in a loss of $790 million in market capitalization. In addition, Canaan Inc. recorded a 16% drop, cutting its valuation to $460 million.
Mining revenues are on the rise
Despite the decline in the market capitalization of crypto-mining companies, AltIndex noted a consistent increase in miners' income.
AltIndex, citing data from TheBlock, reported a significant increase in miner revenue by 43% since the beginning of the year. The report highlights the impressive growth, with miner revenues rising from $601.2 million in January to $856 million in July.
This upward trajectory was not without hesitation. In the first four months of the year, miner revenues showed steady growth, peaking at $920 million in May. However, this peak was followed by a drop to $783.7 million in June. Notably, July saw a resurgence as profits surged to $856 million. This positive momentum has continued unabated this month, with miners already generating more than $455 million in revenue.
Bitcoin mining difficulty rises to ATH.
According to mempool.space data, Bitcoin mining difficulty increased by 6.17% on August 22 to hit an all-time high of 55.62 trillion hashes. This increase in difficulty comes on the heels of Bitcoin climbing to an all-time high of over 400 trillion hashes per second (Th/s) for the first time in the past week.
The rising numbers underscore the significant rise in miner hashrate, signaling a potential end to miner capitulation.
