Mining Stocks Are Beating Bitcoin in a Bullish Cryptocurrency Market

Share this story:

Returns for Riot, Marathon and Bitcoin since August 2019

Betting against bitcoin has been a losing battle for months amid gaining more than 200% since its March lows. Benefiting from this rally, moreover, cryptocurrency mining stocks trading on U.S. markets are significantly outperforming the benchmark cryptocurrency.

  • Over the past year, two cryptocurrency mining companies — Riot Blockchain and Marathon Patent Group — have gained 97% and over 128 percent, respectively. Bitcoin is up 3% in the same period.
  • The companies moderately underperformed bitcoin during the Q1 2020, but since mid-April, both took off.
  • The size of both companies mirror the relatively still small size of the crypto space, with neither company reporting a market capitalization above $150 million.
  • “Spillover from resurging interest in cryptocurrencies” is one reason for recent gains in mining stocks, according to Ryan Watkins, bitcoin analyst at Messari. “It’s natural for mining stocks to rise with cryptocurrencies,” he said.
Returns for Riot, Marathon and Bitcoin since August 2019
Source: Messari, Yahoo Finance
  • Riot and Marathon currently have mining capacities of 357 petahash and 19 petahash per second.
  • The companies’ strong performance comes on the back of record trading volume.
  • Marathon daily volume soared to an all-time high of over $225 million on Aug. 3, up from $1.6 million a month earlier. Three days later, the company reached a two-year high of $5.25 per share.
  • After reporting less than $5 million for most of July, Riot daily volume also skyrocketed to a record-setting $58 million on Aug. 3 shortly before setting a new yearly high of $4.58.
  • “It’s also natural for mining stocks to rise faster than bitcoin because investors are pricing in a bull market, which could cause revenue to balloon,” Watkins added.

Read more about…

Bitcoin MiningRiot BlockchainMarathon Patent Group


The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Read More

All provided materials and tools are for entertainment purposes only and should never be considered financial advice. Crypto News 19 will not take any responsibility for lost funds based on investments/trades made on information found here or any linking website/affiliate. This includes all social media posts and all other communications occurring under the name Crypto News 19. You should always seek professional advice before making any investment or trade.