Riot Platforms Stock Drops 53% in 2024 Despite Bitcoin Rising 44%

Despite Bitcoin’s 44% increase in 2024, major mining companies like Riot Platforms have suffered significant losses. Riot Platforms’ stock has dropped by 53%, largely due to the decreasing profitability of mining following the halving in April. The halving reduced the number of bitcoins miners can earn by half, while the costs of equipment and electricity have remained unchanged.

In August, North American publicly traded mining companies minted only 19.9% of the total Bitcoin network. This decline from previous months has led investors to question the profitability of mining under current economic conditions.