Stock in Crypto Mining Firms Riot and Hive Massively Outperforms Bitcoin

Published at: July 3, 2020

The share price of Bitcoin (BTC) mining firms Riot Blockchain and Hive Blockchain has produced enormous year-to-date gains, with stock in Riot nearly doubling while Hive’s has tripled over 2020 so far.

However, not all mining firms have fared well throughout the COVID-19 pandemic, with Canaan’s stock falling nearly 70% since early January, and both Hut 8 and DMG Blockchain seeing scant YTD gains despite experiencing significant volatility this year.

Mining firms outperform Bitcoin

While Bitcoin is up more than 26% from roughly $7,200 to $9,100 since the start of the year, the leading cryptocurrency’s gains have been dramatically overshadowed by a handful of firms mining it.

Hive Blockchain has seen a dramatic performance this year, rallying more than 420% from the start of 2020 until mid-February, from $0.066 to $0.345. The firm’s shares crashed back to $0.118 over the next month as immediate economic fallout from the coronavirus took effect. However, an expansion that led to Hive doubling its mining capacity saw its stock rebound to test the $0.033 area by mid-May. 

HIVE/CAD 2020 YTD: Google

The firm’s shares have since fallen back to $0.228.

After starting the year trading for $1.22, Riot Blockchain shares rallied to $1.60 by mid-February before crashing to $0.65 in roughly one month. However, Riot produced a strong recovery, gaining over 375% to trade for $3.10 on June 10. The firm’s shares have since retraced to $2.29.

RIOT/CAD 2020 YTD: Google

Riot’s recovery may have been boosted by announcements in May that its mining revenues had grown 70% in the first quarter year-on-year, its plans to roughly double its hash rate after Bitcoin’s block reward halving, and the dismissal of pump-and-dump complaints against the firm.

Riot also expanded its total hash rate capability after establishing a hosting arrangement for its Antminer S17s with fellow mining firm Coinmint in April after facing disruptions resulting from COVID-19.

Canaan’s shares plummet in 2020

However, the gains enjoyed by Riot and Hive are certainly not indicative of all miners, with Canaan suffering huge losses over 2020 so far.

After starting the year at $6.02, Canaan shed over a quarter of its value by mid-Feb — when a sudden spike pushed prices up to $8.04 in a single day. Canaan’s stock then plummeted to $2.81 in mid-March, before embarking on a steady recovery to retest $6 two months later.

RIOT/USD 2020 YTD: Google

Since May 14, Canaan’s price has crashed by more than two-thirds to currently trade for $1.82.

While the YTD performance for Hut 8 and DMG Blockchain are currently sitting at an approximate break-even, both firms have seen extreme volatility during 2020. 

HUT/CAD 2020 YTD: Google

Both Riot and DMG produced sudden spikes of over 60% in February followed by crashes of at least 60% by mid-March and a recovery back to trade at early-January levels.

DMGI/CAD 2020 YTD: Google

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Blockchain
Bitcoin
Business
Mining
Canaan
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