Miner shares rose by 24% in a day on the back of bitcoin’s growth above $70 000

What’s new? On October 28, the shares of leading bitcoin miners showed sharp daily growth, while the asset’s exchange rate itself crossed the $70 000 mark. The strongest jump was recorded in securities of Singapore Bitdeer (BTDR), 24,44%. Also in the top three in terms of growth rates were Australian Iris Energy (IREN) and Canadian Hut 8 (HUT); they added 17,84% and 15,5%, respectively.

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What else is known? Mining company Blockware cited an improving macroeconomic climate and the expansion of its business of leasing rigs to AI startups for high-performance computing as reasons for the growth.

Regarding the macroeconomic environment, Blockware’s chief analyst Mitchell Askew said lower earnings and interest rates have boosted global liquidity.

At the same time, investors are wary of high inflation in the long term, as evidenced by low Treasury yields following the Fed’s September rate cut. As a result, investors are turning to bitcoin markets, where miner stocks show high volatility.

The industry as a whole has seen a drop in revenue since the halving in April this year. This programmed event occurs every four years since the launch of the Bitcoin network and halves the reward to miners for mining a block, this time it was reduced to 3,125 BTC.

As a result, many large miners have begun to diversify their income. For example, market leader Marathon Digital (MARA) started selling excess heat for space heating and mining in addition to BTC the KAS token, whose blockchain allows simultaneous issuance of several blocks.

However, the most popular trend among market leaders has been leasing part of the mining capacity to startups in artificial intelligence. Core Scientific (CORZ) and Hut 8, among others, have done so.

As Askew notes, after the halving, unprofitable miners left the market, while the remaining ones managed to stabilize their revenues at the level necessary to continue their activities.

At the end of September, Bitdeer successfully completed testing of a new bitcoin mining chip SEAL02 with an energy efficiency of 13,5 J/T. It will be integrated into the new SEALMINER A2 miner, mass production of which will begin at the end of the year.

At the same time, Hut 8 launched GPU-as-a-Service (GPUaaS), which leases 1000 NVIDIA H100 GPUs for computing.