Shares of U.S. mining companies dropped by 50%
The United States is the world leader in mining cryptocurrencies, yet this does not affect the value of the national mining companies' shares.
According to Barrons, Marathon and Core Scientific shares have dropped about 47% since April 18, while Riot shares have been cut in half. The stock price of the Canadian mining company Hut 8 Mining Corp also fell by 41%.
Despite rising profits, the reason for the drop in the stock was the recent fall of the TerraUSD stablecoin. Following that, many cryptocurrencies also fell in value, including the already accelerating bitcoin drop. Over the past month, bitcoin has fallen 25%, while its correlation between technology stocks and cryptocurrencies has increased. It reached a three-month peak last week.
Some analysts say many traditional investors added cryptocurrency to their portfolios. But as tech stocks drop sharply, investors are selling digital assets to generate earnings.
The environmental impact of mining also contributes to the decline in share prices of mining companies. There are already 160 cryptocurrency bills pending in more than 30 states.
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