The Ukraine war, exorbitantly high inflation rates and the fear of a recession. Investors are struggling with a conglomerate of uncertainties in the current market environment.
Risk assets in particular are struggling with the current market sentiment. Not only cryptocurrencies themselves, but also companies whose business has to do with Bitcoin and Co. had to accept some price losses.
Some investors are not big fans of investing directly in cryptocurrencies. Such public companies can provide an alternative to participate indirectly in the crypto market.
Crypto mining companies compared
For example, some crypto miners are listed on the exchange. However, due to the exponential price increases in the energy sector due to the Russian war of aggression, coin miners do not necessarily have it easy. Some miners have had to lose more than 70 percent of their value since the beginning of the year.
“While it is not worth mining in Europe at the current BTC price, in the USA it depends heavily on which state the miner is located in,” explains Stefan Lübeck, market expert at BTC-ECHO.
Even apart from the rising electricity costs, the crypto mining companies are currently struggling with the difficult market conditions. Lübeck: “Due to interest rate and recession fears, the stock market is generally correcting and companies that generate little or no profit and have a risky market environment have been thrown out of investors’ portfolios.”
But the capital-intensive mining equipment itself could also have contributed to the current development of crypto mining stocks, says the market expert. “Another reason for selling miner shares is the fall in the price of mining hardware. So far, this has been accepted as security or countervalue. Since mining hardware is now sometimes valued 50 percent below the previous year’s or purchase prices, this is another problem for the miners,” says Lübeck.
The consequence: some miners had to sell their “silverware” in the form of Bitcoin, explains the market expert. After all, running costs and open loans do not cover themselves.
Below we’ve taken a closer look at five select crypto mining stocks.
We took a closer look at these 5 crypto mining stocks
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Disclaimer: The content presented here does not constitute a buy or sell recommendation. It merely reflects the opinion of the editor.
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