Bitcoin Miners Are Dominating Public Markets

Bitcoin Mining

Bitcoin mining continues to be an area worth paying attention to, regardless of your role in the market.

Hash rate has been the one thing that has been parabolic since the launch of the Bitcoin protocol. This trend has become more pronounced if you closely look at the timeframe from the 2018 bear market to the current market flow. You can see that the hash rate has continued to accelerate despite the ban on Bitcoin mining in China when more than 50% of all mining was within the country.

The rivalry for the block subsidy gets more intense as the hash rate rises. In the past 24 hours, miners have received payments totaling $40.4 million. That comes to a yearly $14.7 billion. There is almost no scenario where the hash rate will stop growing when more than $14 billion in revenue is up for grabs annually.

The money that miners receive from transaction fees is another factor to consider. Because so many individuals are attempting to use the blockchain during the happy phase of the market cycle and there is a finite amount of block space available, transaction fee revenue often spikes during bull markets.

Even though the market is still in a bear market, we have just observed two significant increases in transaction fee revenue. Even though Ordinals and Inscriptions are the main drivers of these, they nevertheless represent a notable divergence from historical patterns and have given miners even more financial motivation to keep fighting for profits.

So how exactly have miners been performing?

Let’s check out publicly traded miners to get a view of how the industry players are doing this year:
•          Marathon Digital: +359%
•          Iris Energy: +356%
•          Cleanspark: +356%
•          Riot Platforms: +349%
•          Hive Digital: +159%
•          Terawulf: +128%
•          Hut 8 Corporation: +1,228%

Although this kind of financial performance is noteworthy in and of itself, it is even more so when one considers that five of the seven listed companies have more than quadrupled the performance of Bitcoin in the past year.

How miners are managing the bitcoin on their balance sheet is another intriguing piece of information. As you can see, since the beginning of November, miners have been net sellers, indicating that these companies are capitalizing on the current price increase and selling into strength to increase their cash reserves.


Overall, Bitcoin mining is in a great spot.

The hash rate is at all-time high levels currently.

Bitcoin miners are pulling in more than $14 billion in yearly revenue.

And we are yet to experience the bitcoin having slated for early 2024.

The narrative that the Bitcoin community has spread about purchasing and holding only Bitcoin is interesting for conversation starters, but you should consider your goals carefully from an investing standpoint. Given the state of the market and the success of stocks, it is difficult to discount the advantages of Bitcoin miners.

Gold miners and investors have long argued about the merits of owning gold vs investing in gold mining stocks. With a similar discussion, the Bitcoin community is hot on their heels.