Last year was one of the most challenging ever for the crypto market as trading volume slumped and prices drowned in the aftermath of crypto winter, but one of the most brutal years for the industry has also had a huge impact on the crypto mining companies which lost billions of dollars in their stock values.
According to data presented by BitcoinCasinos.com, the world`s five largest crypto mining companies have collectively lost $5,2-billion in market cap year-over-year. Stock values more than halved amid the crypto winter.
Crypto mining stocks, represented by the Amplify Transformational Data Sharing ETF (BLOK), dramatically underperformed the broader market last year. According to Yahoo Finance, BLOK provided a total return of -54,3% last year, deep below the S&P 500’s total return of -19,44%.
The melting stock prices of crypto mining companies led to colossal market cap drops. The Ycharts data showed the combined market cap of Riot Blockchain, Marathon Digital Holdings, Canaan Inc, Cipher Mining Technologies, and Hut 8 Mining – the world`s five largest crypto mining companies – amounted to over $8,5-billion in January last year. Over the past 12 months, this value slumped by 61% to below $3,3-nillion.
The world`s largest crypto miner, Riot Blockchain, has lost 57% or around $1,3-billion of its stock value year-over-year. Still, that was 11% less than Marathon Digital Holdings, the second-largest company in the market. In January 2022, the stock value of the Las Vegas-based crypto mining company stood at close to $3-billion, and now it`s less than $980-million.
Although all five crypto mining companies suffered a double-digit market cap drop, Chinese Canaan Inc saw the least damage. Statistics show that Canaan`s market cap dropped “by only” 46% year-over-year, with the company losing around $450-million in stock value.
On the other hand, New York-based Cipher Mining Technologies saw the biggest drop, with its stock value slumping by 67% year-over-year and $565-million being wiped off its market cap. Hut 8 Mining stands close, with a 65% YoY drop to $480,7-million.
Besides its biggest players losing billions of dollars in stock value, the crypto mining industry has also witnessed a considerable drop in crypto mining revenues.
In January 2022, the miners’ average daily revenue amounted to $41,1-million, reveals the Blockchain data. By June, this figure nearly halved to $27,9-million, reflecting the Bitcoin price drop. However, July saw only $18,2-million in daily mining revenues, which continued floating around this value in the following months before falling to 2022`s low of $15,5-million in December.
Although this figure rose to $15,7-million as of last week, this still represents a massive 61% drop year-over-year.
