
📉 2024: A Challenging Year for Mining Companies 🛠️
Even more than a twofold increase in Bitcoin’s price 🚀 couldn’t save most major mining companies’ stocks from declining in 2024. Out of 25 publicly listed firms in this sector, only seven showed positive performance. Industry giants in the US, such as Marathon Digital (MARA) and Riot Platforms (RIOT), ended the year with losses of –16% and -30%, respectively.
💡 Why Did This Happen?
2024 became a year of adaptation to new challenges, including the halving, which slashed mining revenue by half. Companies began seeking new survival strategies:
- DeFi Investments: Miners increasingly supported projects leveraging Bitcoin’s blockchain for decentralized applications.
- AI Infrastructure: Some redirected resources to offer computing power for artificial intelligence.
- Bitcoin Hoarding: MARA adopted a strategy of not selling mined Bitcoin, opting instead to secure loans to increase its holdings. Today, it’s the second-largest corporate Bitcoin holder after MicroStrategy.
🔥 What’s Next?
The year demonstrated that mining companies’ success no longer hinges solely on Bitcoin’s price. They must diversify their activities, explore new markets, and adapt to evolving conditions.