Bitcoin mining firms’ stocks have narrowed the gap with BTC with robust gains over the last month and will most likely continue to do so.
The Bitcoin mining firms’ stocks have also participated in the dramatic recovery of the Bitcoin price over the past three weeks.
The Bitcoin halving event in April had a significant impact on the stocks of the public-listed crypto mining firms.
However, these BTC mining firms have experienced a robust recovery in recent months, which is consistent with the BTC price recovery.
Bitcoin Mining Stocks to Outperform BTC
According to on-chain data provider ecoinometrics, Bitcoin mining stocks have been closing the gap with BTC.
After the launch of spot Bitcoin ETFs in the United States in January, and until the Bitcoin halving event, Bitcoin mining stocks performed poorly.
This was primarily because investors sold the equities in anticipation of the halving event, which caused a decrease in mining revenues and rewards, as well as the subsequent increase in costs.
However, in the past two months, the BTC mining industry has been making efforts to streamline its operations and transition to more profitable sectors, including AI and cloud computing.
Northern Data and other BTC mining companies are currently placing bets on these significant changes to increase their revenue by the end of the year.
As things appear to be improving further, ecoinometrics suggests that BTC mining stocks may outperform Bitcoin in the future.
“In the previous cycle, Bitcoin miners acted as a leveraged bet on BTC. We believe this is still valid given the small size of miners’ stocks compared to their potential,” added econometrics.
Analysis of BTC Mining Stocks Performance
In the US, some of the best Bitcoin mining companies that are on the stock market have seen good recoveries over the past month.
Marathon Digital (NASDAQ: MARA), the largest Bitcoin miner, has experienced a 32% increase in stock price over the past month, while the price of Bitcoin has increased by 5.26% during the same period.
Over the past month, the stock price of Riot Platform (NASDAQ: RIOT) has increased by 30%, while Cipher Mining (NASDAQ: CIFR) has experienced a remarkable 44% increase.
Market analysts anticipate this outperformance to continue.
