Wall Street Bitcoin Miner’s Stocks Collapse as BTC Price Slips Below $90K

Shares of
major publicly listed Bitcoin (BTC) mining companies tumbled this week as the
oldest cryptocurrency continued its retreat below the critical $90,000
threshold. Widening net losses and increasing competition led the worst-performing stock to lose nearly 30% in a single day.

Industry
leaders were also unable to resist the negative trend, as the index tracking
the condition of BTC
mining stocks dropped to its lowest levels since September 2024.

Wall Street Bitcoin Miners
Net Losses Intensify

Cipher
Mining Inc. (NASDAQ: CIFR) shares declined despite reporting fourth-quarter net
earnings of $18 million, or $0.05 per diluted share. The company’s adjusted
earnings reached $51 million ($0.14 per diluted share), but investors appeared
more focused on longer-term concerns about profitability as Bitcoin’s price
fluctuations continue to impact mining economics.

“We
had an extremely productive fourth quarter at Cipher, as we continued the
on-time execution of our growth and expansion plans,” said Tyler Page, CEO
of Cipher Mining, highlighting the company’s increased hashrate to
approximately 13.5 EH/s following upgrades to its Odessa fleet.

However,
the net result interests shareholders the most, which turned out to be worse
than last year. The loss deepened to nearly $45 million, up from just under $26
million reported a year earlier.

Meanwhile,
Bitdeer Technologies Group (NASDAQ: BTDR) faced steeper declines after
reporting more disappointing numbers. The Singapore-based blockchain and
high-performance computing company posted a substantial net loss of $599.2
million for 2024, compared to $56,7 million. Total revenue dropped to $349.8
million from $368.5 million year-over-year.

“Last
year, we strategically prioritized resources to the development of our
proprietary ASIC technology, which temporarily limited our hashrate growth and
impacted our financial performance,” Matt Kong, Chief Business Officer at
Bitdeer, commented.

Wall Street Reacts with
Declines to Miners’ Earnings and Bitcoin Price

In stark
investors’ reaction, Bitdeer shares dropped 29% on Nasdaq during Tuesday’s
session, closing at $9.26 and testing their lowest levels in three months.
Cipher Mining fell more than 17% in response to its latest report, declining to
$4.10 and reaching a four-month low.

The decline
extended across the entire sector, not just companies releasing new financial
results. A notable example is MARA (NASDAQ: MARA), the largest publicly traded
miner on Wall Street by market cap, whose shares fell 11% to $12.42, their
lowest since November 2023.

Among the
steepest decliners were Canaan (NASDAQ: CAN), which dropped 17% to $1.29, and
IREN (NASDAQ: IREN), down 13.6% to $8.78.

The
negative sentiment was fueled in part by Bitcoin’s sharp two-day decline. On
Tuesday, its price closed well below $90,000, briefly testing levels closer to
$86,000—the lowest since November.

The Bitcoin
Mining Stock Index, provided by Hashrate, also saw a steep drop, sliding to
levels not seen in five months.

A notable
example is Riot Platforms (NASDAQ: RIOT), which also released its financial
results this week. The
company reported record revenue of nearly $377 million and a net income of $109
million. Despite these strong numbers, shareholders focused more on
Bitcoin’s performance, leading the stock to drop to multi-month lows.

This
highlights that, for many investors, mining stocks remain an indirect way to
gain exposure to Bitcoin on regulated exchanges, with their prices closely
tracking Bitcoin’s movements.

This article was written by Damian Chmiel at www.financemagnates.com.