Bitcoin Mining Stocks Outperform BTC

Bitcoin miners have weathered a challenging period marked by regulatory crackdowns and environmental concerns. However, recent signs suggest a potential turnaround for the industry, according to the Ambcrypto.

Stock prices of Bitcoin mining firms Marathon Patent Group and Riot Blockchain have outperformed Bitcoin on a Year-To-Date (YTD) basis, according to IntoTheBlock. As of June 1, Bitcoin’s performance rose 64.57%, while Riot and Marathon saw increases of 253.98% and 186.26% respectively.

This shift is partly due to increased miner revenues and fees, possibly linked to the adoption of Bitcoin Ordinals. The rise of BRC-20 tokens, leading to increased transactions and minting on the Bitcoin blockchain, has also played a role.

In response to environmental concerns, some mining firms have adopted greener practices. This move not only mitigates environmental impact but also improves public perception of the industry.

Glassnode data shows that the Fee Ratio Multiple (FRM), a measure of blockchain security, has decreased to 19.38. This suggests that Bitcoin can maintain its security budget through miners’ revenue without relying on inflationary subsidy.

Despite these positive signs, the hash ribbon metric indicates that miners’ challenges are not entirely over. However, the same metric suggests that Bitcoin may present a good buying opportunity.

Short-term holders remain hopeful for a Bitcoin price increase, as indicated by the Spent Output Profit Ratio (SOPR). This metric reflects the degree of realized profit and losses moved on-chain, suggesting continued interest in the market.

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