Crypto Mining Stocks Rally After Bitcoin Surges Near Record, Ether Hits All-Time High

Among the crypto miners, Marathon Digital led the surge on Monday, with the stock soaring almost 20%, while peer Riot Blockchain climbed 17%.

Other miners such as Bit Digital, Bitfarms, Hive Blockchain, Hut 8, Cleanspark, Sphere 3D and Greenidge Generation each rose more than 10%. Meanwhile, Stronghold, Argo and Cipher’s shares were each up more than 5%.

With bitcoin prices climbing above $60,000, miners big and small continue to make profits, leading to a surge in capital flowing into the sector and more companies delving into mining.

“With current BTC mining margins north of 90%, capital is aggressively flowing into the sector, which we expect to make BTC mining more institutionalized,” said BTIG analyst Gregory Lewis in a research note.

Moreover, Lewis highlighted that the breakeven cost, in terms of electricity, for miners can range from anywhere between $5,000 to $14,000 per bitcoin, implying a heightened profit margin level for miners minting coins at current bitcoin prices.

Another crypto-linked stock, MicroStrategy Inc., which is often seen as a proxy for bitcoin, climbed about 9%, while crypto exchange Coinbase Global gained 7% and Robinhood Markets, where many users trade crypto, was mostly flat on Monday.