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Despite the firm’s claims that earnings have grown due to the recent reduction in Bitcoin hash rate, Bitfarms’ debuting shares have been unable to escape the bearish crypto meta-trend.
The highly anticipated Nasdaq launch of Bitfarms (BITF), a renewable energy-focused BTC mining startup, saw the company’s shares drop by as much as 8.6 percent amid weakness in the broader crypto markets.
BITF started at $4.04 and soon gained a few percent to a high of $4.11 before falling as low as $3.90 as cryptocurrency values fell. Bitfarm’s stock was recently traded for $3.96.
The share prices of publicly-listed Bitcoin mining firms have taken a beating over recent months.
Marathon Digital Holdings (MARA) is trading at $27.83, down roughly 51% from its all-time high of $56.50 in early April, while Hive Blockchain (HIVE) is priced at $2.38, down 57% from its February high of $5.50, and Riot Blockchain (RIOT) is priced at $31.57, down nearly 60% from its February high of $77.90.
Aside from the large BTC sell-off that followed Bitcoin’s all-time high in April, the bad performance of mining equities has been attributed to negative impressions of the sector’s energy usage, as well as reactions to China’s growing crackdown on local miners.
Bitfarms, on the other hand, claims to have profited from the recent hash rate exodus from China as a result of the clampdown, with the Canada-based company claiming that 99 percent of their computing is powered by “green” hydroelectricity. In its June 10 production update, Bitfarms company stated:
“As the hashrate of Chinese miners falls, Bitfarms has earned higher transaction fees and increased its share of the total Bitcoin network hashrate. As a result, Bitfarms has been earning more Bitcoin for the same amount of computational power and operational cost.”
Despite recent price declines in mining stocks, It was revealed in March that the industry had outpaced the current price of Bitcoin by 455 percent over the previous 12 months.