Capitalization of the largest miners breaks records
Since the spring of 2020, the value of shares of the largest mining companies has been steadily increasing.
According to Lior Shimron, representing the research center Fundstrat, in the reporting period, the capitalization of bitcoin added 761%, while the price of miners' shares soared by about 5,000%. The expert told about this on the air of the CNBC channel and clarified that he took into account the financial indicators of such giants as Hut 8, Hive Blockchain, Riot Blockchain, as well as Marathon Digital Holdings.
Shimron stressed that this year there has been a gradual transition of miners to long-term storage of cryptocurrency.
Crypto mining companies are trying to hold on to bitcoins as long as possible, as they believe the price of BTC will go up.
The expert also noted that mining companies rose in price every time by about 2.5% after the cost of bitcoin increased by only 1%. However, the capitalization of these enterprises will collapse at the moment when the crypto market, and first of all, bitcoin, begins to rapidly retreat.