Bitfarms, the Canadian Bitcoin mining firm that is debuting shares on Nasdaq has failed to escape the narrow bearish crypto meta-trend. Despite the latest crypto downturn, the firm insists that its profits have soared amid a recent drop in the Bitcoin hash rate.
The highly anticipated Nasdaq debut of the renewable energy-focused bitcoin mining firm, Bitfarms (BITF), saw the company’s stock slump by up to 8.6% following the current crypto markets pull-back.
BITF shares on Nasdaq opened at $4.04 and rapidly soared to reach as high as $4.11 before plunging to lows of $3.90 following the tumbling cryptocurrency prices. Bitfarms’ Nasdaq-listed shares were exchanging hands at $3.96 at the time of publication.
Over the recent months, the share prices of publicly-listed bitcoin mining firms have recorded undesirable performances including the Marathon Digital Holdings ‘MARA’ asset tech.
Marathon Digital Holdings (MARA) is reportedly down roughly 51% from its earlier all-time high of $56.50 after its stock last exchanged hands for $27.83. On the other hand, Hive Blockchain (HIVE) shares are trading at $2.38 which is a loss of 57% from its February highs of $5.50, and Riot Blockchain (RIOT) is priced at $31.57 after losing nearly 60% from its February peaks of $77.90.
In that context, the heavy BTC sell-off that followed Bitcoin’s April all-time high is purportedly one of the factors that have attributed to the poor performances of mining stocks. Other alleged issues include negative perceptions about the sector’s energy consumption, carbon footprints, and reactions to China’s extensive crackdown on domestic miners.
Bitfarms said that it had benefited from the recent hash rate exodus from china amid the clampdown, with the Canadian-based firm estimating 99% of its power computation is powered by “green” renewable hydroelectricity. In its June 10 production update, Bitfarms highlighted:
“As the hash rate of Chinese miners falls, Bitfarms has earned higher transaction fees and increased its share of the total Bitcoin network hash rate. As a result, Bitfarms has been earning more Bitcoin for the same amount of computational power and operational cost.”
Despite the recent heavy setbacks observed in the price of mining stocks, as of March 2021, the sector had outperformed the spot price of Bitcoin by 455% during the preceding 12 months.