Bitcoin miners rise despite BTC weakness…Terawulf up 31% so far this month

JOON HYOUNG LEE

Summary

So far this month, Terawulf shares have risen about 31%, while Cipher Digital and Hut 8 shares are up 8% and 6%, respectively.
This contrasts with the bitcoin spot price, which fell nearly 17% over the same period.
Markus Thielen said mining stocks have high hedge-fund short interest, but could rise on the back of a solid profitability structure and long-term energy contracts.

Bitcoin (BTC) mining stocks such as Terawulf have posted gains so far this month.

According to CoinDesk on the 25th (local time), shares of bitcoin miner Terawulf rose about 31% this month. Shares of other bitcoin miners Cipher Digital and Hut 8 also climbed 8% and 6%, respectively, over the same period. CoinDesk noted that this contrasts with bitcoin’s spot price, which fell nearly 17% during the period.

The rally in miners’ share prices is being attributed to fundamentals. Markus Thielen, founder of 10x Research, said that mining stocks are among the names with the highest level of hedge-fund short interest, but added that they could rise on the back of solid profitability. He said companies that have secured long-term energy contracts on favorable terms have a strategic advantage that goes beyond simply mining bitcoin.

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