Bitcoin mining stocks dwarf Bitcoin’s gains amid short squeeze buzz
Quick Take
Bitcoin mining stocks have seen a remarkable performance in 2023, outpacing Bitcoin’s already impressive 160% YTD surge. Key mining players, including Hive and Marathon Digital Holdings, have recorded skyrocketing growth figures at an astonishing 274% and 767% YTD, respectively.
Data from Fintel points to an intriguing phenomenon – a significant percentage of short interest in these mining stocks, corroborated by analyst Mortensen Bach. This short interest has added momentum to their upward trajectory. CryptoSlate observed a divergence a few months prior between miners and Bitcoin’s price, a trend that has now caught up and exceeded the Bitcoin price.
Mining Stock
Short Interest %
$HUT
32.74%
$WULF
22.58%
$MARA
22.60%
$CIFR
20%
$RIOT
18.16%
$BTBT
13.73%
$CLSK
8.42%
$SDIG
7.20%
$BITF
6.51%
$HIVE
5.25%
$IREN
4.01%
$BTDR
3.13%
$MSTR
20.93%
Source: Fintel
The Bitcoin mining proxy, WGMI, has surged 143% in the past three months, compared to Bitcoin’s 64% increase. The interplay of high short interest and rising prices on these mining stocks suggests a potential short squeeze scenario playing out. As prices continue to climb, shorts may be closing their positions, propelling prices upwards.
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