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Bitcoin Miner Stocks Surge Amid Banking Meltdown: 11% Gains Seen

Posted on 14. March 2023 in Allgemein

• Bitcoin miners’ stocks surge amid banking meltdown
• BTC prices are up 17% in the past 24 hours
• Exposure to crypto-friendly Signature Bank varies among miners

Bitcoin Miner Stocks Surge Amid Banking Meltdown

Mining equities were up about 11% on average on Monday alongside big gains for bitcoin. A number of crypto miners, such as Cipher Mining (CIFR), Hut 8 (HUT) and Stronghold Digital (SDIG), saw the largest gains in Monday trading after the U.S. government late Sunday moved to protect all depositors at collapsed lenders Silicon Valley Bank (SVB) and Signature Bank.

BTC Prices Up

The price of bitcoin is higher by 17% over the past 24 hours to $24,100. Wolfie Zhao, head of research at TheMinerMag commented that “Many even didn’t surge more than bitcoin”.

Signature Bank Deposits

The extent of the mining sector’s exposure to crypto-friendly Signature Bank is unclear. Marathon Digital Holdings (MARA) reported that it still had access to $142 million in deposits the now-shuttered lender while CleanSpark (CLSK), Bitfarms (BITF) and Argo Blockchain (ARBK) said they have no exposure to either Signature or the other collapsed banks, Silvergate and SVB. However, an Argo subsidiary does hold operating funds in Signature deposits.

Conclusion

Bitcoin miner stocks surged amid a banking meltdown following U.S government protection for all depositors at collapsed lenders Silicon Valley Bank and Signature Banks. BTC prices are also up 17%, with many miners seeing their share value increase by an average of 11%. The extent of mining sectors exposure to crypto-friendly Signature Bank varies across firms but some do have access to deposits from this bank.