Why Bitcoin Mining Stocks Tumbled Sharply on Thursday
There was a lot of action in cryptocurrency-related stocks on Thursday. Unfortunately for shareholders of crypto-mining companies, the action in that segment consisted of widespread sell-offs.
Several really took it on the chin that day. Marathon Digital Holdings (NASDAQ: MARA), for instance, saw its share price close nearly 13% lower. Worse for wear was peer Riot Platforms (NASDAQ: RIOT), with an almost 16% decline. Landing between the two was the much smaller Bitfarms (NASDAQ: BITF); its stock endured a more than 13% decrease.
The main culprit was the market's new spot Bitcoin (CRYPTO: BTC) exchange-traded funds (ETFs), which started trading on Thursday. Investors piled into these new instruments; all told, $4.6 billion worth of them changed hands as of that afternoon. We can reasonably conclude that at least some of these trading parties pulled money out of Bitcoin mining stocks in a reallocation move.
Source Fool.com
