Mining stocks drop 20%–50% in a single week despite institutional accumulation
Publicly traded Bitcoin mining companies endured a steep downturn this week as the sector fell far harder than Bitcoin’s own pullback. The widespread retreat wiped out billions in market value and intensified concerns over the industry’s post-halving profitability.
Bitcoin Mining Stocks Decline as BTC Pulls Back
Across the last five trading sessions, major miners— including Cipher, Applied Digital, Core Scientific, CleanSpark and Bitdeer — recorded losses ranging from 23% to more than 50%. Other notable operators such as Riot and Hut 8 also slipped into double-digit declines, reflecting broad pressure across the industry.
Bitcoin traded near $94,400, roughly 9% lower on the week. Yet the sector’s losses were significantly deeper.
A recent Miner Mag analysis highlighted that public mining stocks have shed over $20 billion in market value in the past month, marking a roughly 25% sector-wide decline since mid-October. Analysts say the retreat underscores a mismatch between Bitcoin’s moderate pullback and miners’ heavier downside risk.
“The divergence shows how sensitive miners are to even small changes in Bitcoin’s price and network economics,” one market strategist noted.
Another analyst commented that the sector’s volatility often magnifies BTC’s market moves, especially when profitability compresses.
Institutional Buying Fails to Slow the Downtrend
Even with the sharp drop, institutional firms including Jane Street, Fidelity and Barclays continued accumulating shares across several miners.
Still, the momentum was not enough to stabilize the downturn.
Interestingly, some miners remain standout performers on a yearly basis. IREN, now the largest public miner by market cap, is up about 370% year-to-date, while Cipher Mining has gained roughly 210%. In comparison, Bitcoin is up only around 1.5% over the same period.
AI and HPC Become the New Lifeline for Miners
As mining margins tighten, companies are accelerating their shift into AI and high-performance computing (HPC).
Miners are now repurposing energy-intensive data centers for more stable, higher-margin workloads.
Bitfarms announced it would wind down Bitcoin mining entirely over the next two years, converting facilities into AI and HPC centers — a move that sent its stock sharply lower on Friday.
Other firms are choosing hybrid models. Core Scientific recently signed a $3.5 billion HPC hosting deal, while CleanSpark’s first AI initiative boosted its stock. IREN entered a five-year, $9.7 billion agreement to provide Microsoft access to Nvidia GPUs.
The shift suggests that AI infrastructure may become miners’ most critical revenue pillar going forward — even as Bitcoin remains at the core of their identity.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.