Crypto Mining Stocks Outperforming Bitcoin: A New Dawn for Miners?

• Bitcoin miners have experienced a difficult period due to regulatory crackdowns and environmental concerns.
• Stock prices of two major mining companies, Marathon Patent Group and Riot Blockchain, have outperformed Bitcoin this year.
• Improved revenue, fees, adoption of Bitcoin Ordinals, BRC-20 tokens, and sustainable practices have helped miners bounce back.

Bitcoin Miners’ Challenges

The king coin has lost its place as the top-performing digital asset of the year. However, the overtakers are linked to the mining sector. Does this mean miners’ challenges are over?

Performance Outpacing BTC

Two stocks of certain Bitcoin mining firms are outperforming BTC. As of 1 June, Bitcoin’s performance rose 64.57%. Riot recorded a 253.98% increase while Mathent’s stock value increased by 186.26%. This has pegged BTC back as the best-performing digital asset of the year — a title it once held.

Revenue & Fees Boosting Mining Sector

One reason for this turnaround is the increased revenue and fees that miners have recorded recently. This could be connected to the adoption of Bitcoin Ordinals and BRC-20 tokens which have resulted in more transactions and minting on the blockchain network.

Sustainable Practices Help Mitigate Environmental Impact

Some mining firms have also taken steps to address their environmental impact by adopting more sustainable practices which help mitigate negative effects as well as improve public perception about them.

Fee Ratio Multiple Decreasing

Security also improved with Glassnode data showing that Fee Ratio Multiple (FRM) had decreased to 19.38 — indicating that bitcoin fees were declining relative to their transaction values