🌎 Crypto Mining Stocks Outperform Bitcoin Post-Halving in 2024

Bitcoin has had a strong start in early 2024, yet crypto mining stocks have outperformed BTC following the halving. Notably, Hut 8 and Bitfarms have delivered the highest returns.

The fourth Bitcoin halving event has significantly impacted the crypto mining landscape, affecting smaller mining firms more severely. Analysts at CCData attribute this to “suboptimal infrastructure and the lack of economies of scale.”

Consequently, private equity firms have consolidated smaller firms and integrated their infrastructure, despite recent challenges for Bitcoin (BTC) itself. This strategic interest has led to a noticeable performance in mining stocks. According to analysts, shares of Hut 8 (HUT) and Bitfarms (BITF) achieved returns of 86% and 34%, respectively. In contrast, Bitcoin is down 3.62% post-halving.

Bitcoin Miner Performance Post-Halving

Bitcoin’s price has remained range-bound between $59,000 and $72,000 in the three months following the halving. By contrast, major U.S. equity indices have reached new all-time highs. This, along with reduced trading activity on centralized exchanges, has led some to speculate that the market may have peaked this cycle.

However, historical trends suggest that the halving event “always preceded a period of price expansion,” lasting from 366 days (in 2014) to 548 days (in 2021) before hitting a cycle top, according to CCData. The analysts claim that the data and previous trends are strong enough to suggest that any sideways price action is temporary. They add that the market is likely to breach previous all-time highs once again before the end of the year.