The stock prices of public crypto-mining companies have surged this week along with the price of Bitcoin. In Canada, Vancouver-based Hive Blockchain is up 50 per cent, Toronto’s Hut 8 is up 54 per cent and Bitfarms, which operates in Quebec and abroad, is up 54 per cent.
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The stock prices of public crypto-mining companies have surged this week along with the price of Bitcoin. In Canada, Vancouver-based Hive Blockchain is up 50 per cent, Toronto’s Hut 8 is up 54 per cent and Bitfarms, which operates in Quebec and abroad, is up 54 per cent.
Talking point: The economics of Bitcoin mining only work when the asset commands a high enough price to offset miners’ massive electricity bills and other costs, making the miners’ stocks highly correlated with the price of Bitcoin. And Satoshi Nakamoto’s original crypto asset is enjoying a mini rally this week, as inflation eases and interest-rate hikes are expected to slow. Bankruptcies have already flushed some of the most troubled miners out of the system, taking selling pressure off the price of Bitcoin. Times remain tough for Canadian Bitcoin miners, however: Bitfarms defaulted on a loan for mining equipment last week.
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