Can I get your evaluation of the current circumstances. Since November 11th these stocks have dropped significantly all while bitcoin has increased significantly from that same date. It does not seem like their share price is directly correlated with the price of bitcoin which is odd as they mine bitcoin.
Thank you
Many bitcoin mining stocks have seen their price slightly decouple from the actual price of bitcoin recently, and part of this may be attributed to: investor uncertainty around whether bitcoin can sustain these price levels, increased short interest, the rise of ETFs and other proxies like MSTR, and/or broader confusion around operations (AI, mining, etc.).
We feel that a sustained move for BTC above $100K would likely cause some short covering, and might spark a rally in some of these bitcoin miners, but there is a lot of uncertainty here. The miners have mostly been consolidating for the past couple of years, while short interest has been building up, we think that patience will be required, but if the price of bitcoin is rising and demand for AI compute continues, their fundamentals should improve.