Bitcoin Dips, Miners Slip: Who's Bleeding The Most — Hut 8, Marathon Digital Or Hive Digital?
Crypto mining stocks took a hit in pre-market trading as Bitcoin (CRYPTO: BTC) plummeted 22.45% over the past month and is down 9.15% in just five days.
Here’s a closer look at three of the top pre-market losers and whether their dips offer a compelling opportunity:
- Hut 8 Corp. (NASDAQ:HUT): $14.91 (-7.74%)
- Marathon Digital Holdings, Inc. (NASDAQ:MARA): $19.63 (-6.43%)
- HIVE Digital Technologies Ltd. (NASDAQ:HIVE): $2.86 (-6.23%)
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Hut 8
Despite the recent dip, Hut 8 is up 21.14% year-to-date and a staggering 77.58% over the past month.
Craig-Hallum Capital Group upgraded HUT to a Buy, citing its ~$600 million bitcoin stack as a protective feature and potential for growth.
Hut 8’s venture into the artificial intelligence (AI) services market later this year is expected to boost its revenue mix, aided by a $150 million strategic investment from Coatue.
Additionally, Hut stock will join the broad-market Russell 3000 index post the 2024 Russell U.S. Indexes annual reconstitution.
With its AI vertical set to generate revenue in the second half of 2024, Hut 8’s future looks promising despite current market jitters.
Marathon Digital
Marathon Digital has seen a 36.95% increase over the past year but is down 10.69% year-to-date.
The company recently started mining Kaspa (KAS-USD), diversifying its portfolio. Despite a 40% year-over-year drop in bitcoin production due to the April halving, Marathon’s operational hash rate increased 2% month-on-month.
Holding 18,536 unrestricted BTC as of June 30, Marathon is positioned for resilience. Its proprietary mining pool’s performance and strategic diversification might offer a cushion against Bitcoin’s current slump.
HIVE Digital
HIVE Digital Technologies has had a tough year, with its stock down 39.24% over the past year and 32.67% year-to-date. However, it has gained 17.99% over the past month.
The company reported a Bitcoin HODL value of over $170 million as of June 9. Recent financial results showed a GAAP EPS of a negative 57 cents, beating estimates by 10 cents and revenue of $114.47 million, beating by $2.71 million. Despite its struggles, Hive’s financial resilience and substantial Bitcoin holdings might offer a silver lining for investors looking to buy the dip.
While Bitcoin’s slide has dragged down crypto mining stocks like Hut 8, Marathon Digital and Hie Technologies, each company has unique strengths that could make them compelling buys for risk-tolerant investors.
Hut 8’s AI ventures, Marathon’s diversification into new digital assets and HIVE’s financial resilience present intriguing opportunities amidst the current market volatility.
As always, potential investors should weigh these factors against the inherent risks in the volatile crypto market.
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