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The prices of Riot Platforms Ltd. outpaced the growth in share prices of other mining firms in the last 24 hours of the trading week. It coincides with a new Texas mining facility announcement.
Shares Of Mining Firms Gain Ahead Of Bitcoin Halving
Several bitcoin mining firms listed on the Nasdaq stock exchanges ended the trading week with a remarkable increase in share prices on the last trading day of the week, in the backdrop of the bitcoin halving.
On April 20, the bitcoin blockchain marked the 4th halving. This date is important for Bitcoin mining firms because it will impact business operations substantially. Halving will reduce miners’ rewards to half for every block. The latest halving event will cut miners’ rewards from 6 BTC to 3.125 BTC per block mined.
The stock investors in the shares of the firms involved in Bitcoin mining were speculating that mining firms might be able to take the lead in the industry. The share prices of several mining firms have surged by about 10% in the 24 hours preceding the actual halving event.
Riot Platforms Performance
RIOT Platforms experienced the most significant growth among publicly listed Bitcoin mining firms on April 19. Their stock price increased by 10.13% to $9.13. Another reason for the price increase is that on the same day, RIOT announced the launch of a new 250-acre mining facility in Corsicana, Texas.
This announcement allows the CEO of Riot Platforms, Jason Les, to ring the closing bell at the Nasdaq headquarters.
Thank you @Nasdaq for hosting @RiotPlatforms at the closing bell! #Bitcoin mining is going to continue to grow and innovate in the United States. pic.twitter.com/ig3ue2KXUr
— Pierre Rochard (@BitcoinPierre) April 19, 2024
Growth in the Shares of Other Mining Firms
Marathon Digital (MARA) shares followed the raise with a percentage increase of 9.78% to $16.50, whereas the shares of Clean Spark (CLSK) saw an increase of $5.98% to $17.20.
Impact of Bitcoin Halving
Bitcoin halving has forced miners to adapt their operation strategies to produce the same top-line revenue or freeze operations altogether. Asher Gennot, CEO of Hut8, recently conveyed that several Bitcoin mining firms went bankrupt in 2022 as the firms were overleveraged and unprepared for rising energy costs.
Major BTC miners have recently acquired significant amounts of new equipment to prepare for the halving event.
Marathon Digital (MARA) recently announced its plan to buy a Bitcoin mining facility 200-megawatt for $87.3 Million. In December 2023, Riot, the competing Bitcoin mining company, purchased 66,560 mining rigs from famous manufacturer MicroBT, one of the most significant expansions of hash rates in the firm’s history.
The S&P 500 is the index that tracks the 500-largest public companies in the United States that experienced another 0.88% 24-hour decrease before the close of the trading week, which marked a decline of 3.54% in the last five trading days, as per the data from Investing.com.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
