Several Bitcoin (BTC) mining firms listed on the Nasdaq stock exchange closed the trading week with a noticeable 24-hour increase in share prices in the lead-up to the Bitcoin halving event.
On April 20, Bitcoin celebrated its fourth-ever halving event, and the date was likely firmly marked in the calendars of Bitcoin mining firms as it can significantly disrupt business operations.
The halving event slashes miner rewards in half for every block they mine. The most recent halving cut down miners’ rewards from 6 BTC to 3.125 BTC per block mined.
However, stock investors were speculating about which firm might take the lead in the industry, with certain mining firms surging as much as 10% in the 24 hours prior to the halving event.
Riot Platforms (RIOT) led the charge on the April 19 trading day, as its stock price increased by 10.13% to $9.13. On the same day, Riot announced the launch of a new 250 acre mining facility in Corsicana, Texas.
The announcement granted Jason Les, CEO of Riot Platforms, the opportunity to ring the closing bell at the Nasdaq headquarters.
Meanwhile, Marathon Digital (MARA) closely followed with a 9.78% increase to $16.50, while Clean Spark (CLSK) saw a rise of 5.98% to $17.20.
The halving event triggers Bitcoin miners to change up their operational strategies if they want to maintain the same profit margins.
Bitcoin miners who stick with using the same energy and resources to mine Bitcoin will likely see diminished profits. This leaves miners with two options, either expand operations to produce the same level of top-line revenue or cease operations altogether.
Cointelegraph recently reported that major Bitcoin miners have been acquiring significant amounts of new equipment in preparation for the event.
Related: Marathon Digital Holdings launches direct Bitcoin transaction submission service
Marathon Digital recently announced its plans to acquire a 200-megawatt (MW) Bitcoin mining facility in Texas for $87.3 million.
Meanwhile, in December 2023, competitor Bitcoin mining firm Riot Platforms purchased 66,560 mining rigs from manufacturer MicroBT in one of the largest expansions of hash rate in the firm’s history.
Overall, the S&P 500 — the index that tracks the 500-largest public companies in the United States — experienced another 0.88% 24-hour decrease before the close of the trading week, marking a 3.54% decline over the past five trading days, as per Google Finance data.
Magazine: Get Bitcoin or die tryin’: Why hip hop stars love crypto
Source link
