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.
about Bitcoin Miners Struggle Amid Market Decline and Halving Impact
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Bitcoin and Solana Face Significant Declines Amid Market Turmoil
Bitcoin whales have sold over $1.2 billion amid worsening macroeconomic conditions, with Bitcoin’s price dropping to $86,099, leading to significant liquidations and losses across the market. Solana has seen a 50% decline from its all-time high, driven by reduced memecoin trading activity and a drop in its decentralized finance ecosystem’s total value locked (TVL) from $12 billion to $7.13 billion. As market confidence wanes, traders are closely monitoring key support levels for both Bitcoin and Solana, with potential for further declines.
about Bitcoin and Solana Face Significant Declines Amid Market TurmoilImpact of Trump’s Tariffs on the Cryptocurrency Market and Mining Operations
Tariffs imposed by the U.S. under President Trump have significantly impacted the cryptocurrency market, leading to notable price declines for Bitcoin and Ethereum. The 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Chinese goods, triggered a sell-off as investors shifted to safer assets amid economic uncertainty. Additionally, increased costs for mining equipment due to tariffs have squeezed profit margins for U.S. Bitcoin miners, further affecting the industry’s stability.
about Impact of Trump's Tariffs on the Cryptocurrency Market and Mining OperationsBitcoin 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.
about Bitcoin miners pivot to AI and chip sales ahead of earnings reportsBitcoin Mining Slowdown Signals Potential for Extended Price Corrections
A decline in Bitcoin mining activity has historically led to prolonged price corrections, with current trends indicating a potential downturn as competition and energy costs squeeze profit margins. Bitcoin’s price has dropped nearly 14% since January 20, 2025, amid uncertainty over government crypto policies and persistent inflation, which diminishes the appeal of riskier assets. Despite these challenges, the Bitcoin mining industry continues to contribute significantly to the U.S. economy, creating over 31,000 jobs and generating more than $4.1 billion in annual GDP.
about Bitcoin Mining Slowdown Signals Potential for Extended Price CorrectionsBitcoin Miners Hoard Cryptocurrency Amid Growing Competition and Market Trends
Major Bitcoin miners, including Marathon Digital Holdings and Riot Platforms, are hoarding significant amounts of BTC, likely in anticipation of future profitability and competition. This trend reflects a strategic choice to maximize future earnings, especially with the upcoming halving event. Meanwhile, Petrobras is entering the Bitcoin mining space, indicating growing interest from energy firms in cryptocurrency.
about Bitcoin Miners Hoard Cryptocurrency Amid Growing Competition and Market TrendsBlackRock increases stake in Strategy to 5 percent with new shares
BlackRock has increased its stake in Strategy (MSTR) to 5%, owning approximately 11.2 million shares after acquiring about 1.8 million shares in the fourth quarter of 2024. This move positions BlackRock among the top shareholders of Strategy, alongside Capital International Investors and Vanguard Group. Strategy, which recently rebranded from Michael Saylor’s company, aims to be the largest Bitcoin treasury firm while advancing in AI-enabled business intelligence. Meanwhile, its perpetual preferred stock (STRK) debuted on Nasdaq, showing positive trading momentum.
about BlackRock increases stake in Strategy to 5 percent with new sharesTesla Gains from New Bitcoin Accounting Rule While MicroStrategy Faces Tax Risks
Tesla reported a $600 million profit from its bitcoin holdings, accounting for over 26% of its fourth-quarter profits, thanks to a new accounting rule allowing mark-to-market valuation of crypto assets. In contrast, MicroStrategy faces potential billions in taxes on unrealized gains due to the same rule, which could subject it to a 15% tax under the Corporate Alternative Minimum Tax starting in 2026. This shift in accounting standards may impact other companies following MicroStrategy’s bitcoin investment strategy.
about Tesla Gains from New Bitcoin Accounting Rule While MicroStrategy Faces Tax RisksGrayscale Launches Bitcoin Miners ETF for Global Mining Exposure
Grayscale has launched a Bitcoin Miners ETF, trading under the ticker MNRS, which focuses on companies involved in Bitcoin mining and related services. The fund, based on the Indxx Bitcoin Miners Index, excludes direct investments in digital assets and aims to provide investors with exposure to the Bitcoin mining ecosystem. Key holdings include MARA Holdings, Riot Platforms, and Core Scientific, which together represent over a third of the index.
about Grayscale Launches Bitcoin Miners ETF for Global Mining ExposureCrypto mining stocks decline as tech rebounds after DeepSeek concerns
Crypto mining stocks faced losses for the second consecutive day, with Riot Platforms down 4.37% and Cleanspark dropping 2.47%, as major tech stocks like Nvidia rebounded sharply after concerns over AI valuations following DeepSeek’s claims. The AI-related crypto sector also suffered, with a 5.11% market cap decline, led by Venice Token’s 20.29% plunge. Meanwhile, Bitcoin hovers near $100,000 amid speculation that the Federal Reserve will maintain interest rates unchanged.
about Crypto mining stocks decline as tech rebounds after DeepSeek concernsCrypto Stocks Decline as Trump Takes Office Without Mentioning Cryptocurrency
US crypto stocks fell on January 21, with Riot Platforms down 4.85% and CleanSpark dropping 7.67%, as President Trump’s first day in office lacked any mention of cryptocurrency. Despite this, Bitcoin rebounded 3.45% to $105,770, while the S&P 500 saw a slight uptick of 0.88%. Trump’s recent pardon of Silk Road founder Ross Ulbricht has sparked hope among crypto advocates for future pro-crypto actions.
about Crypto Stocks Decline as Trump Takes Office Without Mentioning CryptocurrencyMarket Update: Trump Executive Orders and Earnings Reports Impact Stocks
President Trump issued several executive orders post-inauguration, delaying tariff actions but granting TikTok 75 days to find a U.S. owner. U.S. stock futures are up, with Netflix gaining ahead of earnings, while Bitcoin pulls back from its all-time high. Apple shares drop nearly 2% after a downgrade over iPhone sales concerns.
about Market Update: Trump Executive Orders and Earnings Reports Impact Stocks