Share this article
Bitcoin Mining Profits Remain at ‘Near Highs’ as Crypto Miners Rally
Crypto mining stocks are surging as bitcoin mining hashrate falls, helping to keep profit margins elevated.
By Aoyon Ashraf
Updated May 11, 2023, 5:49 p.m. Published Nov 2, 2021, 4:38 p.m.
Crypto mining companies, including Marathon Digital and Hut 8, outperformed other crypto-linked stocks on Tuesday, as economics for the miners continues to be lucrative.
Shares of crypto miners, which have the highest correlation to the bitcoin price, started November on a bullish tone, tracking gains in the price of the largest cryptocurrency. Bitcoin climbed above $64,000 on Nov. 2, after exiting October near $60,000 levels. Ether, the native token of Ethereum, also rallied to an all-time-high above $4,500.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Meanwhile, the Bitcoin network’s hashrate, a measure of mining activity, dropped to about 153 exahashes per second (EH/s) from as high as 185 EH/s in October, according to data analytics firm Glassnode. Generally, if the network hashrate declines while prices are rallying, miners make more profit from mining bitcoin.
With bitcoin’s price climb since the start of the month and the hashrate declining about 18% over the last seven days, bitcoin economics remain “near highs,” Lucas Pipes, an analyst at B Riley, wrote in a research note.
To put the crypto miners’ profitability into context, DA Davidson analyst Christopher Brendler estimated in a recent research note that for miners such as Marathon Digital, the gross margin, or profit after operating costs, will be about 89.6% in 2021 and 90.8% in 2022.
Bitfarms’s stock climbed 12% on Tuesday, after achieving record high bitcoin mining power in October. Shares of Marathon Digital rose 11%, as did Hive Mining. Hut 8 climbed 10% and Riot Blockchain advanced 7% on Tuesday. Argo Blockchain underperformed its rivals, falling about 1.7% even after reporting record revenue in the third quarter.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Michael Saylor's Strategy Hangs on to Spot in Nasdaq 100 Index
The annual Nasdaq 100 rebalance saw six companies dropped and three new additions, with changes taking effect on December 22, but bitcoin treasury company Strategy hung onto its spot.
What to know:
- Strategy (MSTR) will remain in the Nasdaq 100 index despite a major reshuffle, which saw several household names dropped.
- The firm's business model, which involves stockpiling bitcoin, has drawn criticism from analysts and index providers, with MSCI considering excluding crypto treasury companies from its benchmarks.
- The Nasdaq 100 rebalance saw six companies dropped and three new additions, with changes taking effect on December 22, but Strategy's bitcoin-heavy strategy secured its spot.
Top Stories
