Crypto mining stocks rallied on Monday on the recent rise in bitcoin’s price, as well as on support for an amendment to the U.S. infrastructure bill that would specifically exclude miners from additional tax reporting requirements.
BIT Mining (BTCM), CleanSpark (CLSK) and Bitfarms (BITF) were all up by double-digit percentages on Monday, rising around 21%, 12%, and 11%, respectively, while Riot Blockchain (RIOT), Marathon Digital Holdings (MARA), Hive Blockchain Technologies (CVE) were also up 8%, 5% and 7%, respectively. Argo Blockchain (ARBKF), which reported earnings early on Monday, however, was down 2%.
“Mining stocks currently are levered plays on the price of bitcoin,” said Michael Del Grosso, an analyst who covers Riot Blockchain and Marathon Digital Asset Holdings at Compass Point Research. “All of that is occurring while the hash rate is relatively muted … because of the Chinese miner disruption, which is still taking months to shake out.”
Bitcoin was up 6% over the last 24 hours, rising from around $43,600 to more than $46,000. The rise in mining stocks also comes at a time where bipartisan support emerged for an amendment to the U.S. infrastructure bill that would exclude miners from being considered “brokers” under the crypto tax reporting provision of the bill. The U.S. Senate, however, rejected the amendment in a vote on Monday afternoon.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.