Returns as of 02/25/2022
Returns as of 02/25/2022
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
A bad day for the leading cryptocurrencies typically means a bad day for cryptocurrency mining companies. Sure enough, on a Wednesday where both Bitcoin and Ethereum sagged in U.S. dollar price, so did major miners.
This was compounded by disappointing preliminary earnings from a peer. As a result, shares of Bitcoin-digger Bit Mining ( BTCM 1.78% ) slipped by more than 9% on the day, followed by Riot Blockchain ( RIOT -1.60% ) and CleanSpark ( CLSK -0.00% ), with declines at around the 7% mark.
Image source: Getty Images.
Greenidge Generation Holdings ( GREE 0.11% ), a member of that crypto-mining club, reported preliminary Q4 and full-year 2021 results Wednesday morning. The Bitcoin miner expects to post revenue of around $44 million for the period, with a net loss coming in at $41 million to $51 million.
These results, with that gaping net loss, clearly didn’t please investors. They unceremoniously traded the stock down by nearly 12% on the day.
With major cryptos like Bitcoin still getting smacked by the bears, and a peer reporting a likely deep bottom-line deficit, few investors were interested in Bit Mining, Riot Blockchain, CleanSpark, or basically any other company extracting digital coinage. I should note that none of those three companies had any negative news of their own that would have organically driven down their share prices.
Zooming out on a wider picture, investors still remain hesitant about cryptocurrencies, in general.
The Fed is almost certain to start raising interest rates in the very near future, a move that typically drains investment monies out of more speculative assets — and cryptocurrencies are Exhibit A for such investments. And if investors shy away from digital coins and tokens, you can bet your bottom Bitcoin they’ll keep avoiding mining stocks, too.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool’s premium services.
Making the world smarter, happier, and richer.
Market data powered by Xignite.