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01 Jun 2022
Finally some mining stock gains
Even though times are tough in the bitcon mining industry, most mining stocks have increased during the past seven days.
Cipher has been the best-performing mining stock over the past seven days, increasing by 19%. This increase has helped them recover some of its 50% losses endured over only two days at the beginning of May after publishing a disappointing Q1 report. Even after its recent increase, Cipher is still down 27% over the past 30 days. Cipher's recent strong rebound shows that the market may have overreacted when it sent the stock down 50% earlier in May.Source: TradingviewAlthough many mining stocks have rebounded, Core Scientific has kept dropping. The largest mining company by hashrate fell 12% over the past seven days and is now down 71% YTD. We shouldn't forget that Core Scientific is a strong company with a history of operational excellence, so the stock's massive decline this year doesn't reflect the company's quality.Cathedra is the second-worst performer after falling 9%. This stranded natural gas-focused miner is one of the smallest publicly traded mining companies, with an operating hashrate of only 0.2 EH/s. Getting the company prepared for a prolonged economic downturn is a top priority for its management, which recently announced that the company had sold almost its entire bitcoin holdings. Several other mining companies have also recently decided to sway away from the mine-to-hodl strategy, including Core Scientific, Marathon, Riot, and Bitfarms. That miners who previously were vocal on never selling bitcoin have started to sell tells us that conditions are tightening in the mining industry. In this article, I analyze the balance sheets and bitcoin production costs of public mining companies to determine which of them are best prepared to weather the storm.