Dec 30, 2022 08:20

Two crypto-related ETFs were the worst-performing in Australia for 2022

ETFs tracking crypto companies have seen significant drawdowns over the year as a result of major macroeconomic headwinds.

Dec 14, 2022 05:55

Crypto stocks plunge to record lows, GBTC at 50% discount despite Bitcoin uptick

Several crypto-related stocks have seen their values plunge to new record lows despite Bitcoin’s (BTC) value gaining upward momentum over the past 30 days.

The post Crypto stocks plunge to record lows, GBTC at 50% discount despite Bitcoin uptick appeared first on CryptoSlate.

Aug 17, 2022 08:55

[Update] - As Bitcoin Mining Companies Enter 'Unprofitable' Territory, a Potentially MASSIVE Profitable Play Opens Up...

Update: Looks like our theory was correct (and while it could reverse course any time) currently CORZ is up 64.20% over the last 30 days.!

Original Article 6/15/2022:

S9 miners, extremely popular mining rigs with almost 8 years in the market, are operating at a loss to anyone located somewhere paying more than 2cents USD per kilowatt-hour in electricity costs. This is most US states.

This was brought to our attention on via tweet from an employee at Core Scientific, a Texas based mining company with stock trading on the NASDAQ stock market under the symbol 'CORZ'  

Crypto companies daily income and net worth can change drastically, fast.  In the case of CORZ, which also holds 8000 BTC, Bitcoin returning to just $30,000 could happen over a single week - and would suddenly turn a company that was losing money into one that gained $80 million more in assets. 

These factors are prime examples why stocks for companies focused entirely on crypto are different than anything Wall Street has seen before. 

Figuring out the value of a mining company isn't as simple as a formula for their hashrate (mining power) = X BTC earned daily + BTC already owned = company value.  The price of Bitcoin isn't the only factor - even the weather can dramatically change profitability, as we covered last week how Texas based mining companies are having to power down during heatwaves. 

Wall Street Debates How To Trade Crypto-Company Stocks...

Because of the factors explained above, we saw Core Scientific with a stock price around $13 just 6 months ago, down to $2 today.

Browsing stock-focused online communities makes one thing clear - stock traders still aren't sure if this represents a company moving towards failure, or chance to buy something with a rare huge potential upsides. 

The Power Play, Where You Don't Buy Bitcoin... and Profits Are Potentially 200% Higher...

So here's what it all comes down to - if you believe Bitcoin will return to or pass $60k again, and believe a stock like Core Scientific will return to $13 when it does (the price it was last time Bitcoin was at $60k) - the stock represents a 5X return on investment when Bitcoin's price only does a 3X.

Which is huge, and seems realistic - but will it?

The same financial press publishing crypto doom and gloom stories currently, will of course, again, hype up 'Bitcoin's comeback' when things go the other way.

So it's safe to say the buzz outlets like Bloomberg, CNBC, and Wall Street Journal will create will bring a boost to crypto related stocks as well. The audience of these publications includes a segment of investors not comfortable enough with tech to ever own crypto, but is willing to buy stocks that allow them to capitalize on a trend.

Here's Why it Isn't as Simple as 'Bitcoin up = Crypto stock up'...
The benefits of Bitcoin's decentralization is highlighted here, these risks apply to stocks but are not a factor for Bitcoin. 

Actually, these risks apply to any company managed by humans. A company can be derailed a number of ways - an inexperienced CEO or Board of Directors, negligence or fraud in the accounting department, a company deciding to issue a large number of additional shares, or bringing in a new key investor and issuing them a large number of shares below market value - all of these can quickly bring a stock price down - but none of then can happen to Bitcoin. 

It's not even as simple as finding a company managed by trustworthy and experienced executives - note that not all of the factors mentioned above would be considered poor company management, some are just part of doing business.
I do not currently own shares of any crypto mining company stocks...This caught my interest and I immediately wrote this article, haven't moved on anything and still unsure if I will.  The main reason for hesitating is this would mean canceling some of my current open positions to 'buy the dip' on Bitcoin and a couple other coins I'm confident will rise again. 

Share your thoughts on this with us on twitter @TheCryptoPress!

-----------
Author: Ross Davis
Silicon Valley Newsroom
GCP | Breaking Crypto News

Subscribe to GCP in a reader

Jun 28, 2022 01:10

Goldman Sachs says Coinbase may need to sack more workers; downgrades its stock rating to sell

Leading investment bank Goldman Sachs has downgraded Coinbase’s stock rating to sell from neutral and reduced its price target from $70 to $45 in its latest note, CNBC reported June 27.

The post Goldman Sachs says Coinbase may need to sack more workers; downgrades its stock rating to sell appeared first on CryptoSlate.

Jun 23, 2022 09:40

Voyager's 60% share price plunge leads sea of red for crypto stocks

VYGVF dropped as much as 60% during regular trading hours on June 22 before closing at $0.5998 to mark a drop of 50.84% for the day.

Jun 23, 2022 01:55

As Bitcoin Mining Companies Enter 'Unprofitable' Territory, a Potentially MASSIVE Profitable Play Opens Up...

S9 miners, extremely popular mining rigs with almost 8 years in the market, are operating at a loss to anyone located somewhere paying more than 2cents USD per kilowatt-hour in electricity costs. This is most US states.

This was brought to our attention on via tweet from an employee at Core Scientific, a Texas based mining company with stock trading on the NASDAQ stock market under the symbol 'CORZ'  

Crypto companies daily income and net worth can change drastically, fast.  In the case of CORZ, which also holds 8000 BTC, Bitcoin returning to just $30,000 could happen over a single week - and would suddenly turn a company that was losing money into one that gained $80 million more in assets. 

These factors are prime examples why stocks for companies focused entirely on crypto are different than anything Wall Street has seen before. 

Figuring out the value of a mining company isn't as simple as a formula for their hashrate (mining power) = X BTC earned daily + BTC already owned = company value.  The price of Bitcoin isn't the only factor - even the weather can dramatically change profitability, as we covered last week how Texas based mining companies are having to power down during heatwaves. 

Wall Street Debates How To Trade Crypto-Company Stocks...

Because of the factors explained above, we saw Core Scientific with a stock price around $13 just 6 months ago, down to $2 today.

Browsing stock-focused online communities makes one thing clear - stock traders still aren't sure if this represents a company moving towards failure, or chance to buy something with a rare huge potential upsides. 

The Power Play, Where You Don't Buy Bitcoin... and Profits Are Potentially 200% Higher...

So here's what it all comes down to - if you believe Bitcoin will return to or pass $60k again, and believe a stock like Core Scientific will return to $13 when it does (the price it was last time Bitcoin was at $60k) - the stock represents a 5X return on investment when Bitcoin's price only does a 3X.

Which is huge, and seems realistic - but will it?

The same financial press publishing crypto doom and gloom stories currently, will of course, again, hype up 'Bitcoin's comeback' when things go the other way.

So it's safe to say the buzz outlets like Bloomberg, CNBC, and Wall Street Journal will create will bring a boost to crypto related stocks as well. The audience of these publications includes a segment of investors not comfortable enough with tech to ever own crypto, but is willing to buy stocks that allow them to capitalize on a trend.

Here's Why it Isn't as Simple as 'Bitcoin up = Crypto stock up'...
The benefits of Bitcoin's decentralization is highlighted here, these risks apply to stocks but are not a factor for Bitcoin. 

Actually, these risks apply to any company managed by humans. A company can be derailed a number of ways - an inexperienced CEO or Board of Directors, negligence or fraud in the accounting department, a company deciding to issue a large number of additional shares, or bringing in a new key investor and issuing them a large number of shares below market value - all of these can quickly bring a stock price down - but none of then can happen to Bitcoin. 

It's not even as simple as finding a company managed by trustworthy and experienced executives - note that not all of the factors mentioned above would be considered poor company management, some are just part of doing business.
I do not currently own shares of any crypto mining company stocks...This caught my interest and I immediately wrote this article, haven't moved on anything and still unsure if I will.  The main reason for hesitating is this would mean canceling some of my current open positions to 'buy the dip' on Bitcoin and a couple other coins I'm confident will rise again. 

Share your thoughts on this with us on twitter @TheCryptoPress!

-----------
Author: Ross Davis
Silicon Valley Newsroom
GCP | Breaking Crypto News

Subscribe to GCP in a reader

Jun 13, 2022 07:55

Crypto Stocks Sell Off as Bitcoin Sinks

The sharp drop in Bitcoin (BCT) dragged down shares of companies related to digital assets in the pre-trading session on Monday.

Continue reading Crypto Stocks Sell Off as Bitcoin Sinks at DailyCoin.com.

Dec 11, 2021 02:45

Study Shows Nearly 25% of Investors Dumping Stocks for Crypto

If this doesn’t make you bullish for the future, nothing will. Covered: Recent Data Indicates Investors Prefer Crypto To Stocks Investment Thesis Points To Crypto As Safe Haven Recent Poll Showing Investors Preferring Crypto To Stocks While the market may seem bleak, there is reason to be optimistic. A poll from Civic Science indicates that […]

The post Study Shows Nearly 25% of Investors Dumping Stocks for Crypto appeared first on CryptosRus.

Sep 28, 2021 04:50

Here's why Bitcoin mining stocks have been outperforming BTC price in 2021

One of the crypto mining stocks delivered more than 1,600% returns year-over-year (YoY) while Bitcoin's gains in the same period came out to be around 290%.

Nov 09, 2024 12:00

Galaxy set for more gains after 25% rise on Trump win: Analyst

Donald Trumps Nov. 5 win in the United States presidential election sets the stage for more institutional cryptocurrency adoption, according to a Benchmark research note.

Apr 11, 2023 11:10

[Update] News Bit: Bitcoin Breaks Past $30K, Achieving Highest Price Since June

Bitcoin nears the $30,000 milestone as it reaches its highest value since June, with Ether and crypto stocks also witnessing gains.

The post [Update] News Bit: Bitcoin Breaks Past $30K, Achieving Highest Price Since June appeared first on BitPinas.

Aug 02, 2023 12:25

Crypto Stocks Suffer Due to Low Bitcoin Prices and Escalating Hacks and Exploits

The shares of companies in the cryptocurrency and blockchain technology sector dropped on Tuesday after the recent crypto exploit involving Curve Finance caused the price of Bitcoin to drop to a six-week low. The shares of the publicly listed crypto mining companies were equally affected.

The NASDAQ-listed Coinbase was down 8% at the time of publication, while the shares of Bitfarms have dropped 6% on the daily chart. Similarly, Riot Platforms, Marathon Digital, and the Canadian-listed Hurt 8 have declined 5%, 7%, and 8%, respectively. Besides that, Bitcoin is down 1.5%, according to CoinmarketCap.

Market Volatility

Curve Finance, a decentralized finance (DeFi) platform for stablecoins, was hacked during the weekend through a vulnerability in its smart contracts programming language, Vyper. Following the exploit, the DeFi platform’s native token CRV experienced heightened volatility. Additionally, Upbit, a South Korean cryptocurrency exchange, temporarily suspended deposits and withdrawals in CRV.

According to the cryptocurrency exchange Huobi, the amount believed to have been stolen from Curve is estimated at USD $52 million. The exploit arrived when cryptocurrency platforms are experiencing security challenges due to hacks and exploits, exit scams, and attacks on flash loans.

Finance Magnates reported that hackers stole USD $313 million through hacks and different kinds of malicious activities during the second quarter of the year. Additionally, in the first quarter of the year, the amount lost was USD $320 million.

Impact of Crypto Hacks

In July, crypto hacks and exploits reached the highest level year-to-date at USD $303 million. The funds lost in July to exploits, exit scams, and attacks on flash loans amounted to USD $285 million, USD $8.7 million, and USD $8.6 million, respectively.

According to the security company Certik, the blockchain bridging platform, Multichain, reported the highest amount of losses worth USD $125 million from exploits in July. The highest loss to exit scams was reported on Kannagi Finance at USD $1.9 million, while Conic Finance had the highest loss of USD $3.2 million from attacks on flash loans .

The shares of crypto-related stocks have also been affected by the ongoing litigation in the US against the top cryptocurrency exchanges, Binance and Coinbase, Reuters reported. Additionally, the hike of interest rates by the Federal Reserve has equally affected the digital assets space.

This article was written by Jared Kirui at www.financemagnates.com.

Oct 29, 2021 06:35

5 Best Penny Crypto Stocks for 100x Profit – End October 2021

Penny crypto stocks have gained trading momentum, provoking burgeoning attention from investors ready to profit from the boom. While premier digital asset Bitcoin hit an [...]