Crypto Miners Log Double-digit Stock Price Gains After CPI Report

Hive Blockchain and Marathon Digital hit daily gains of 37% and 31%, respectively, as markets closed Thursday

article-image

DALL-E modified by Blockworks

share

A number of crypto stocks booked massive — and elusive of late — gains in Thursday’s trading session, with crypto miners Hive Blockchain and Marathon Digital among those that skyrocketed amid signs of slowing inflation and a subsequent boost for bitcoin.  

The share price gains across the sector followed Thursday’s US Consumer Price Index (CPI) report, which showed that core inflation rose 5.7% in December from a year earlier, marking another indicator of slowing or reversing inflation. November inflation’s metric had risen 6% year-over-year.  

In the hours after the report, crypto companies notched big stock price boosts. The pops in individual digital asset-related equities mirrored a rise in token prices, as bitcoin and ether were up 8% and 6.4% in the past 24 hours, respectively, through Thursday’s close in New York. 

Canada-based Hive Blockchain was also up on the day, then posting staggering stock gains of about 37%. 

Hive is in the middle of a “massive efficiency upgrade,” the company said this week as it installs a new series of customized miners powered by Intel processors.  

Meanwhile Marathon Digital rose by about 31% on the day, bringing its year-to-date increase to about 107%. The company mined 1,562 bitcoins in the last three months of 2022 — a quarterly record.  

Rival miner Riot Blockchain was also up on the day, rising nearly 15%.

Despite a tough second half of 2022 for bitcoin miners, Riot CEO Jason Les had told Blockworks in October the company was one of the mining sector’s “best-positioned acquirers.” Some analysts have expressed high conviction in Riot due to its lack of debt.  

Crypto bank Silvergate and Coinbase were also in the green, albeit not as much — notching Thursday stock price rises of about 13% and 9%, respectively. 

It was a reversal for Silvergate, whose stock plummeted last week on news that the crypto bank was forced to sell off scores of assets at a major loss to fulfill $8 billion of customer withdrawals during the fourth quarter.

Coinbase has also been plagued by stock ups and downs as it seeks to reel in spending. The company said Tuesday it was cutting an additional 950 staff as part of cost-saving measures.

MicroStrategy, the largest publicly traded holder of bitcoin, was up about 8% on the day. 

The stock price rises reflect appetite for risk. Double-digit daily gains for certain crypto stocks last week came as Wall Street grew confident that the Federal Reserve’s tightening path could end soon, one analyst said. 

Tom Essaye, founder of Sevens Report Research, said Wednesday before the CPI print that inflation metrics would need to continue falling quickly if the market hopes to sustain a broader rally.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

kamino cover.jpg

Research

Kamino has solidified its position as the leading money market on Solana and is emerging as a DeFi bluechip. Although DeFi competition is fierce, Kamino has kept iterating on its product to provide the best-in-class UX, paired with a robust risk management framework and battle-tested infrastructure. Given the rollout of Kamino Lend V2, the protocol may scale aggressively over the coming months, penetrating previously untapped markets in Solana DeFi.

article-image

Why that the bull market might not start until 2025

article-image

August’s annual headline figure came in at 2.3% after an upward revision Thursday, so things are moving in the right direction 

article-image

MSTR’s stock price was roughly $248 at 2 pm ET Thursday

article-image

Ever since rates came off zero and fiscal deficits exploded, markets have started paying close attention to how the government is funding itself

article-image

Solana memecoins are collectively at an all-time high

article-image

Optimistic rollups like Optimism, Arbitrum and Base are seeing rapid adoption relative to zk rollups