Miners Left Behind as Exchanges and Stablecoin Firms Cash In on Bitcoin Rally
Bitcoin's recent price surge has left some industry players behind, and none more so than miners. While exchanges and stablecoin issuers have seen significant gains, miners are struggling to keep pace.
According to data from The Block, out of the top mining companies, only Canaan is performing better than Bitcoin itself, with an average median profit of 1.8% compared to Bitcoin's 22% gain since August 17.
The gap between miners and exchanges/stablecoin issuers is significant, with miners capturing just 8.2% of Bitcoin's upside due to their lower returns. This has led investors to question the value proposition of mining as a leveraged option in Bitcoin.
Some major underperforming miners include Core Scientific and TeraWulf, which lagged behind Bitcoin by 27% and 24%, respectively. These companies are transitioning towards high-performance computing (HPC) and AI, but this shift is also bringing new risks.