Crypto miners, whose shares are most levered to bitcoin prices, surged on Wednesday after the price of the largest cryptocurrency hit an all-time high, trading above $66,000 for the first time.
Canada-based bitcoin miner Hive Blockchain Technologies (HIVE), which mines in regions with cooler temperatures and uses low-cost renewable energy for its operations, was the best performer among mining stocks, rising more than 7%. Fellow miners Hut 8 Mining (HUT) and Riot Blockchain (RIOT) both saw their shares advance more than 3%, while Marathon Digital (MARA) climbed slightly.
Stronghold Digital (SDIG), a bitcoin miner billing itself as an environmentally beneficial operator with access to cheap power, was up more than 60% from its initial public offering (IPO) price in its debut on Wednesday.
The share prices of crypto miners, which derive most of their revenue from mining digital currencies and tend to hold as many of the minted digital coins as possible on their balance sheets, are highly correlated with the price of bitcoin. In fact, according to Wall Street firm D.A. Davidson analyst Christopher Brendler, mining stocks are about 70% correlated to the price of bitcoin.
