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Mining stocks return to growth

In mid-May, mining stocks declined to their lowest levels in recent months, but such stocks have shown significant recovery since then.

Shares in Riot Blockchain, Marathon Patent Group and Canaan are up 49% on average since May 21. Of these, Riot Blockchain showed itself best, whose shares grew by 63%, and the capitalization reached $ 3.4 billion. Marathon also showed a noticeable growth – its shares rose by 55%.

Mining stocks are growing even faster than Bitcoin. Last year, the first cryptocurrency rose 334%, while Marathon shares rose 3119%. If in 2020 the capitalization of Riot Blockchain was less than $ 200 million, then in February 2021 the figure reached $ 6.12 billion.However, at the end of April and early May, along with the fall in the cryptocurrency market, shares of mining companies also showed a significant decline.

One of the factors behind the growth of mining companies was a possible ban on the mining of cryptocurrencies in China. Chinese miners are taking their capacities abroad and placing them on existing sites, which benefits large mining companies.

The outflow of capacity from China led to a significant decrease in the hash rate of mining pools serving customers from the Middle Kingdom. At the same time, pools working with North American miners showed a stable hash rate.

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