Thu 26 Dec 2024 ▪
5 min read
▪
by
Luc Jose A.
The performance of Bitcoin, often seen as a barometer for the entire crypto sector, reveals a paradox this year. Indeed, the price of the flagship asset has risen by 128% over a twelve-month period, reaching levels reminiscent of its glory days. However, this exceptional momentum does not seem to benefit mining companies, whose stocks have seen dramatic declines. This situation indicates a disconnect between the soaring Bitcoin price and the stock performance of mining firms. Investors and analysts are questioning: what are the factors behind this divergence? While Bitcoin continues to attract attention with its resilience and the growing enthusiasm for ETFs and institutional purchases, mining companies face major structural challenges, notably related to energy costs, regulatory pressures, and operational inefficiencies.