Bitcoin Mining Stocks Drop Over 10% Amid Rising Competition and Tariff Concerns
Bitcoin mining stocks are experiencing significant declines amid broader market sell-offs driven by tariff uncertainties. Key points include:
- Most mining stocks fell over 10% on Monday, with MARA Holdings down nearly 11%, Riot Platforms slumping about 8%, and CleanSpark dropping 10%.
- Other crypto-related stocks, such as Michael Saylor's Strategy and Coinbase, also saw declines exceeding 10%.
- Panic selling is widespread as U.S. tariffs contribute to market uncertainty, particularly affecting miners reliant on Chinese-manufactured equipment.
- Tariffs may increase mining costs, compounding existing pressures from high energy expenses and lower profit margins due to recent Bitcoin halving.
- The Bitcoin network's hash rate reached a record 1 zettahash per second, intensifying competition among miners.
- Bitcoin price has dropped from over $109,000 to $77,000, resulting in decreased mining revenue; hashprice is at a record low of $42.40.