Dilution is another key factor here. Crypto mining is a capital-intensive business and operators have been forced to raise significant amounts from public markets investors.
In the fourth quarter of last 2020, Marathon had 51,599,792 shares in circulation. By the fourth quarter of 2021, it had 102,630,637 shares — a 98.9% increase. The story is similar for most of the big miners, as the table below shows.But perhaps more relevant than these external factors in the decline of the bitcoin mining stocks is the simple fact that this is exactly how experts expected such stocks to behave.
The reason is that, beyond simply investing in and holding bitcoin, miners must invest heavily in infrastructure that will produce more bitcoin in the future.
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