The leading US cryptocurrency mining company listed on Wall Street reported lower Bitcoin (BTC) production in February compared to January.
Additionally, the decline in revenue was affected by a sharp revision in BTC prices last month, with the oldest cryptocurrency down 18% and temporarily falling below $80,000. According to the latest JP Morgan report, this had a very negative impact on the market capitalization of mining companies.
Cipher Mining Inc. (NASDAQ: CIFR) produced around 180 bitcoins in February, down from 219 in January. The company attributes a partial decline to short planned shutdowns at the Odessa site due to annual high-voltage electrical maintenance.
Mara Holdings, Inc. (NASDAQ: MARA) mined 706 BTC in February, reducing Bitcoin production by 6% per month, compared to 750 in January. The company cited higher network difficulty and fewer operating days as the main reasons for its decline.
Fred Thiel, CEO, Mara, Source: LinkedIn
“Daily Bitcoin production increased by 4% in February and January,” said Fred Thiel, Chairman and CEO of Mara. “Blocks won, and Bitcoin production fell 6% over the course of the month, mainly due to the network’s difficulty and three fewer operating days.”
As Financial capital letters Yesterday, Riot Platforms (NASDAQ:RIOT) also experienced a decline in production, along with Mara, the second largest miner, Riots (Nasdaq: Riot). In February, its output fell 11% to 470 BTC.
Canaan Inc. (NASDAQ:CAN) reported that it had mined 82 Bitcoins from January 88 in February, increasing its January operating hashrate from 5.53 EH/s to 5.73 EH/s.
Bitfarms Ltd. (NASDAQ/TSX: BITF) mined 213 Bitcoin in February, with only 6% of the modest miners since 201 in January. The company increased its operational hashrate on average from 20% to 13.4 EH/s over the month.
SVP Alex Brammer for Global Mining Operations
“During February, we increased our operational hashrate to 6% to 16.1 EH/s, increasing the average operational hashrate to 20%, reaching an all-time high in three out of four countries,” commented the SVP of Global Mining. “This growth continues as we deploy miners in the US and Argentina and optimize performance across all data centers.”
Wall Street Bitcoin Miner Lost 22% in Market Capital
The decline in production comes amid the broader challenges facing the crypto mining sector. A recent JPMorgan research note highlighted that bank-tracked mining stocks will cut 22% by 22% in February as the price of Bitcoin erodes mining economics.
Despite these headwinds, some mining companies are exploring diversification strategies. For example, Canaan introduced a new home mining machine called Avalon Q, targeting individual users with 90 Th/s devices compatible with standard home power supplies.
Nangen Chan, Chairman and CEO of Canaan
“It is the first professional Bitcoin miner to support 110V home power supplies, cater to mining enthusiasts and expand its reach to individual users,” said Nanangeng Zhang, chairman and CEO of Canaan.
Despite the various challenges miners complain about, 2024 has proven to be a record year for many of them. A notable example was Mara, which reported record financial results for the past year at the end of February, with revenues rising 70% to $660 million.
