Bitcoin Mining Stocks Soar Amid Takeover Frenzy

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Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Bitcoin mining stocks outperformed other cryptocurrency-linked stocks Thursday after multiple industry takeover offers drew market attention to the question of who could be the next target.

Shares of miners such as Stronghold , Core Scientific and TeraWulf surged more than 15%. Gains in Iris Energy , Mawson , Cathedra and Argo Blockchain exceeded 10%.hostile takeover Although Bitfarms and CoreScientific both rejected the offers, the takeover attempts have reminded investors that the industry may be primed for mergers.B. Riley analyst Lucas Pipes said that power contracts and lower valuations could be the catalyst that starts the consolidation phase for miners.

"We believe that the bullish outlook on the power market could catalyze increased M&A activity this year, especially as wide discrepancies in valuation remain," he wrote in a report.that AI and cloud computing firms seeking to diversify their power sources could come after bitcoin miners.

 

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