Bitcoin mining stocks, including Marathon Digital and Riot Platforms, experienced a rise of over 4% on Monday as cryptocurrencies saw a rebound.

Bitcoin Price Breakout

Marathon Digital (MARA) shares increased to $22.45, while Riot Platforms (RIOT) jumped to $11.7. Other Bitcoin mining companies like CleanSpark, Bitfarms, and Core Scientific also saw gains. This upward trend coincided with Bitcoin rising above $70,000 for the first time since June 10, marking a local bull market with a nearly 30% increase from its lowest point in July.

Bitcoin’s recent rally is noteworthy as it overturned the falling broadening wedge pattern, a bullish indicator. This suggests that Bitcoin could continue to rise, with buyers targeting the key resistance level at $72,000, where it formed a double-top pattern earlier in May and June.

Impact on Bitcoin Mining Stocks

Bitcoin mining stocks tend to thrive when the cryptocurrency is on the rise, as these companies are among the largest holders of Bitcoin. Data reveals that Marathon Digital holds 20,000 Bitcoins on its balance sheet. Recently, the company acquired additional coins worth $100 million.

Riot Platforms ranks as the fifth-largest Bitcoin holder, with 89,000 coins, following MicroStrategy, Marathon, Tesla, and Coinbase. Hut 8 Mining holds 89,100 coins. These companies also benefit from selling their mined coins. Marathon Digital’s annual revenue surged from $117 million in 2022 to $387 million in 2023, when Bitcoin approached $50,000.

Upcoming Financial Results

RIOT and MARA stocks may encounter some resistance as they prepare to publish their second-quarter financial results on Wednesday and Thursday, respectively. These results are significant as they will be the first since the recent Bitcoin halving event in April. During the quarter, Bitcoin’s price remained in a consolidation phase.

Most mining companies have reported weaker mining data since the halving. Marathon mined 590 Bitcoins in June, down from 979 in June 2023 and 616 in May. Similarly, Riot Platforms mined 255 coins in June, a significant drop from the 460 it mined in June 2023.

The average estimate indicates that Marathon Digital’s revenue rose by 93% year-over-year in Q2 to $157 million, driven by higher Bitcoin prices. The company generated $165 million in Q1. Riot Blockchain made $79.3 million in Q1 and is expected to have generated $72.2 million in Q2.

Quarterly earnings historically impact stocks. For instance, Tesla stock declined last week after reporting weaker-than-expected Q2 numbers. However, industry insiders remain optimistic about Bitcoin’s future. MicroStrategy’s Michael Saylor predicts BTC will rise to $13 million, while Michael van de Poppe believes it has more upside as long as it stays above $62,000. Plan B also expects Bitcoin to double in the near term.

#Bitcoin is back at $70,000! Donald Trump’s speech has provided a positive impact, through which Bitcoin might be facing an ATH test in the coming weeks. As long as it stays above $60-62K, we’re in good territory for further continuation.

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