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Shareholders of publicly traded bitcoin mining companies enjoyed record monthly gains as the leading cryptocurrency hit a new all-time high on Monday morning.
Castle Rock, the Riot Blockchain (RIOT) mining company based in Colo. It closed November with a 160% gain trading at $ 8.45 per share. The Las Vegas-based Marathon Patent Group (MARA) also climbed more than 190% in November, the company’s largest monthly percentage gain, up more than 600% year to date.
Miner producer Canaan (CAN) ended November with a record monthly gain of nearly 140%, with its US deposit receipts trading at $ 4.99 by Monday’s close.
Riot’s earnings come from the accumulation of thousands of industry-leading mining machines, according to Thomas Heller, chief operating officer of mining software company HASHR8.
“Riot expects to have a total of 22,640 miners deployed by June 2021, and most of them are S19 Pro miners,” Heller said. “Together with the M30S ++, the S19 Pro is the most powerful and efficient miner on the market and has the highest market price.”
Riot also nearly tripled the dollar value of bitcoin holdings, according to the company’s third quarter earnings, to $ 9 million, up from $ 3.1 million during the same period in 2019. Marathon also recorded a percentage increase to three digits in its bitcoin holdings after a record. quarter of mining revenues in the third quarter.
Canaan’s earnings are a relief to shareholders who suffered an 85% decline at the end of the third quarter from the initial November 2019 list price. As of today, in the fourth quarter, Canaan shares are still down by the 18%.
Strong demand from miners for new machines is promising for Canaan, which posted a loss of $ 12 million in the third quarter on Monday. Heller told CoinDesk: “Current orders with Canaan will not be shipped until April due to high demand for ASIC miners.”
Shares of other public mining companies also posted triple-digit percentage gains in November. For example, Vancouver-based Hive Blockchain (HVBTF) gained over 160% over the month with over-the-counter shares trading at $ 1.23 by market close on Monday.
“Mining stocks are a very attractive way for investors to gain exposure to the upside [the] bitcoin price despite being limited to the downside due to the infrastructural nature of the business, “said Ethan Vera, co-founder of the mining company Luxor Technologies, in a direct message with CoinDesk.
“The best mining companies can deliver profits in bear markets and have outsized returns in bulls,” Vera said.
