Bitcoin's Rebound Fails to Lift Mining Stocks Amid Ongoing Challenges
Crypto-linked equities had some winners and losers on Friday, despite Bitcoin reclaiming the $65,000 level. MARA Holdings, Cipher Digital, and TeraWulf all saw their stocks drop after analysts cut their price targets.
The analyst moves were made by Cantor Fitzgerald, Citizens, and JPMorgan following second-quarter losses for each company. MARA posted a net loss of $611 million due to a decline in the value of its BTC treasury, while Cipher Digital's net loss came in at $267.5 million, mostly driven by a non-cash charge tied to warrant liabilities.
TeraWulf's loss was even larger at $940.8 million, almost entirely due to a non-cash hit from marking Google's warrants to market.
Bitcoin miners continue to face pressure from elevated network difficulty and compressed hash-price levels, limiting profitability despite higher BTC prices.