Bitcoin mining stocks are facing significant challenges as prices decline, with a 22% drop in market capitalization reported in February. The recent halving event has halved mining rewards, leading to a 46% average drop in revenues and a 57% decline in gross profits. Despite optimism about AI-related business opportunities, miners are still under pressure from macroeconomic uncertainties and fluctuating demand for high-performance computing.
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Core Scientific Reports Q4 Loss and Plans Major Data Center Expansion
Core Scientific reported a $265 million net loss for Q4 2024, primarily due to a non-cash adjustment related to its stock price. Despite this, the Bitcoin mining company announced a $1.2 billion data center expansion in Texas with CoreWeave, aiming to capitalize on the demand for high-performance computing, potentially generating over $10 billion in cumulative revenue. The company’s stock rose 12.29% following the announcement.
read moreCipher Mining Reports Increased Losses Leading to Significant Stock Decline
Cipher Mining Inc. saw its shares plummet nearly 17.5% on February 25 after reporting a more than doubling of operating losses to $43.7 million for the full year 2024, despite a 19% revenue increase to $151 million. The firm expanded its self-mining hashrate to 13.5 EH/s and is progressing on its “Black Pearl” site, set to energize in Q2. Although the stock closed at $4.10, it remains up about 20% over the past year.
read moreBitdeer Stock Plummets 28 Percent After Disappointing Earnings Report
Bitdeer Technologies Group’s stock plummeted over 28% on February 25 after reporting Q4 2024 revenues of $69 million, a nearly 40% decline year-over-year, and net losses exceeding $530 million. The earnings miss was attributed to the April 2024 Bitcoin halving, increased global network hash rate, and rising R&D costs. Despite efforts to boost revenues through energy-efficient mining hardware sales, the company faced challenges in offsetting declines in other business lines.
read moreBitcoin miners pivot to AI and chip sales ahead of earnings reports
Analysts are focusing on Bitcoin miners’ revenues from AI computing and chip sales ahead of their Q4 earnings, as traditional mining profits decline due to the upcoming halving. Companies like Riot Platforms and Bitdeer are exploring adjacent business lines, with strong demand for ASIC chips and AI services. Riot is also reassessing its expansion plans to capitalize on high-performance computing opportunities, while Bitdeer is investing in infrastructure to support growth.
read moreEconomic Reports and Events Impacting Crypto Markets This Week
Recent economic reports indicate cracks in the US economy, with low service-sector PMI readings and concerns over job market impacts from federal layoffs. Key data releases this week, including GDP and PCE inflation, could influence market sentiment, while a Senate hearing on digital assets may positively affect crypto markets. Bitcoin and Ethereum have shown low volatility, with Bitcoin dipping below $96,000 and Ethereum struggling to maintain gains after recovering from recent hack news.
read moreEthereum Reduces Transaction Fees by 70 Percent Ahead of Major Updates
Ethereum has reduced its transaction fees by 70%, dropping from $23 million to $7.5 million daily, ahead of the Pectra and Fusaka updates set for April 2025. This fee cut, driven by a higher gas limit, is expected to enhance network activity and attract small and medium enterprises in Europe.Additionally, the Cboe BZX Exchange has proposed to the [SEC](https://www.sec.gov) for permission to allow staking for the 21Shares Core Ethereum ETF, which could legitimize Ethereum staking in traditional finance and draw institutional investors. Despite these advancements, Ethereum’s price has declined by 1.1% this year, contrasting sharply with Bitcoin’s significant gains.
read moreEthereum Foundation Invests 45000 ETH in Decentralized Finance Protocols
The Ethereum Foundation has allocated 45,000 ETH, valued at around $120 million, to four decentralized finance platforms: 10,000 ETH to Spark, 10,000 ETH to Aave Prime, 20,800 ETH to Aave Core, and 4,200 ETH to Compound. This move comes amid scrutiny over the foundation’s operational transparency and internal disputes, prompting the establishment of a multi-signature wallet for DeFi engagements. Stakeholder reactions have varied, reflecting skepticism and intrigue about the foundation’s renewed commitment to the ecosystem.
read moreEthereum Foundation Allocates 45000 ETH to DeFi and Considers Staking
The Ethereum Foundation allocated 45,000 ETH, valued at approximately $120 million, across four DeFi protocols, with Aave Core receiving the largest share. This move comes amid community criticism over the foundation’s ETH sales and lack of engagement in DeFi, prompting discussions on staking options. Vitalik Buterin emphasized the challenge of maintaining neutrality during hard forks while managing the foundation’s treasury.
read moreBitcoin Miners Experience Significant Production Decline Amid Rising Difficulty and Hash Rate
Public miners experienced a 15% month-over-month decline in Bitcoin production in January, producing 3,267 BTC as mining difficulty and hash rate reached all-time highs. While Riot Platforms reported a slight increase, other major miners like Marathon Digital and Hut 8 faced significant drops in output. The surge in mining difficulty, which rose 5.6% to 114.1 trillion, alongside a record hash rate of 845.42 EH/s, has intensified competition and reduced profitability, with hashprice falling to $54 per petahash daily.
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