Bitcoin Miners’ Skyrocketing Revenue Clashes with Market Sentiment on Miner Stocks

Bitcoin miners have seen a boom in revenue due to a surge in transaction fees, fueled by increased demand for Bitcoin, resulting in unprecedented transaction volume, according to the Сointelegraph. According to a recent Glassnode report, miners reaped an average of 12.9 BTC in mining rewards per block in May, with fee revenue surpassing subsidies for the fifth time in Bitcoin’s history. CoinMetrics data further revealed that on May 8, miners earned a staggering $41.16 million in daily revenue.

Despite this income surge, the market sentiment for Bitcoin miner stocks seems bearish. Notably, the stock prices for the two largest publicly traded miners, Riot Platforms (RIOT) and Marathon Digital Holdings (MARA), have dipped over the past month. As of May 23rd, RIOT and MARA were 16.16% and 21.33% below their respective April highs. This has led to a high percentage of short interest in these stocks.

Nonetheless, the technical analysis signals potential for further upside for these stocks, suggesting that the recent selling might be overdone. Despite the robust year-to-date returns, RIOT and MARA stocks are not overstretched from a technical standpoint. They have only recently crossed their 200-day moving averages, a bullish precursor.

If Bitcoin can regain its momentum and pass the $30,000 mark in June, miner stocks might continue to outperform due to the  excessive short interest. However, if Bitcoin’s downward trend continues, these stocks will likely fall further.