Matrixport: Mining Stocks May Rally as Bitcoin Earnings Stabilize After Halving

On October 8, Matrixport released a chart stating that since the April 2024 halving, daily earnings from Bitcoin mining have plummeted from $70 million to $31 million. However, mining stocks have been relatively solid, slightly underperforming Bitcoin but outperforming overall. As earnings gradually bottom out, mining stocks may be poised for a rebound. Many mining companies have chosen to hold bitcoin inventory and reduce selling on exchanges, thus easing the market sell-off. This strategy not only provides shareholders with bitcoin operating leverage, but also increases inventory leverage.MicroStrategy shareholders have been handsomely rewarded with a similar strategy.