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After the launch of the bitcoin ETF in January, the price of bitcoin has skyrocketed over the past 50 days, but miners of the leading cryptocurrency have not shared the same level of enthusiasm as investors. However, one company stands out as an exception.
So far in 2024, shares of numerous public mining companies have remained stagnant or declined. For example, Iris Energy (IREN) has declined 11% while Riot Platforms (RIOT) has seen a drop of 6.2%. Although prominent miners such as Bitfarms (BITF) and Marathon Digital (MARA) have seen increases, they are only modest, at 5% and 17%, respectively.
On the other hand, the price of bitcoin is up 42% since the beginning of the year, and BlackRock's iShares bitcoin Trust (IBIT) is up 35% since its inception.
This disparity is surprising given the close link between the price of bitcoin and the operating model of mining companies. These companies invest in expensive equipment and energy to ensure a constant flow of new btc issued by the network.
Mining companies, which receive payments in btc, naturally see their dollar income increase in direct correlation with the price of bitcoin. Currently, miners receive 6.25 btc for each bitcoin block, which is generated approximately every 10 minutes.
There has been a healthy pullback in the mining category.
However, with the bitcoin halving event scheduled for April, the reward per btc will permanently drop to 3,125 btc per block. Several analysts from institutions such as JPMorgan agree that this halving could drive smaller, less efficient miners out of the market.
Isaac Holyoak, communications director at CleanSpark, commented in an interview: “In recent days, there has been a healthy pullback in the miners category. However, before that, mining stocks really led the recent rise in bitcoin price – almost all miners were outperforming bitcoin.”
He added that analytics are seeing some stabilization across the industry as bitcoin and mining stocks realign.
However, miners have additional sources of income, which have been a lifeline for cloud computing company CleanSpark (CLSK), which backs bitcoin.
The rise of bitcoin's BRC-20 tokens last year improved bitcoin transaction fees, providing miners with lucrative extra payouts per block. On a broader scale, bitcoin mining companies are venturing into ai by offering high-performance cloud computing services to support the burgeoning technology. According to executives, this is significantly more profitable per unit of energy than mining btc.
CleanSpark distinguishes itself among public bitcoin miners by outperforming btc this year. Its shares are up 64% so far this year, more than doubling their value last month.
Over the past year, CLSK significantly outperformed btc, with an increase of 603%.
Holyoak suggested that bitcoin ETFs and mining companies offer different opportunities to investors depending on their risk tolerance.
He concluded: “Miners that are well prepared for the halving are likely to continue to receive investor confidence.”
eTukTuk Presale
As the profitability of bitcoin mining declines, attention is turning to TUK, the native cryptocurrency of the eTukTuk ecosystem. Analysts tout TUK as one of the top crypto initial coin offerings (ICOs) by 2024.
eTukTuk is laying the foundation for the future of transportation with its integration of artificial intelligence and environmental friendliness. This innovative platform not only enables immediate investments and profits, but also paves the way for a sustainable transportation revolution. With its $TUK green token pre-sale, eTukTuk is becoming one of the best penny cryptocurrencies by 2024. The project is dedicated to helping Tuk Tuk drivers in developing regions of South Asia and Africa by promoting of energy efficiency.
“eTukTuk is one of the most creatively revolutionary projects to enter the electric vehicle sector in a long time. Although there are many electric vehicle projects, few align with the reality of people living in developing economies.” – @CoinGapeMedia
Read more here:https://t.co/ZfqdSLkbG7
— eTukTuk (@eTukTukio) February 6, 2024
In light of the ambitious goals set by governments in Asia and Africa for the adoption of electric vehicles in the coming decades, eTukTuk is poised to play a pivotal role in this transformative journey.
Investors can take advantage of eTukTuk's staking mechanism, which offers an impressive annual percentage yield (APY) of 257%. For each BSC block, participants will receive $TUK 4.75 in token incentives.
Discover and invest in eTukTuk by visiting their platform.
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