• Bitcoin mining sector ended last year battered and bruised due to reckless central bank policies.
• 2021 has seen a wildly bullish start to the new year, resulting in major gains for publicly-traded bitcoin mining companies.
• Penny stocks refer to small companies trading below $5 per share, many of which saw share prices drop below a single dollar by the end of last year.
The Year 2022
2020 was arguably the worst year on record for bitcoin mining. Central banks around the world recklessly implemented unprecedented policies that had drastic consequences on markets everywhere. The leveraged bet of bitcoin through mining made it no exception – ending 2022 battered and bruised. Many public mining companies were relegated to trading as literal penny stocks by the holidays.
New Year Rally
2023 started with a bang for publicly-traded bitcoin mining companies, experiencing major gains since New Year’s Day due to a sustained rally in bitcoin’s price (44%). Hash rate set new all-time highs in January, even as hash price jumped 25%. Investors have welcomed these positive changes in both share prices and the price of bitcoin itself.
Penny stocks typically refer to securities that trade at market prices of mere pennies or small companies trading below $5 per share listed on large exchanges such as Nasdaq. Most often they trade via over-the-counter (OTC) transactions – many of which saw shares trading below a single dollar come December 2020.
Though 2021 has brought good news for publicly traded bitcoin mining companies, much tragedy was left behind from last year’s events – leaving investors uncertain how long this rally will last. Nevertheless, market data from TradingView shows companies like Riot Platforms, Marathon Digital and CleanSpark have all gained between 40% to 110%, signaling potential growth still ahead this new year despite the struggles endured throughout 2020.