Market Cap of Five Largest Crypto Mining Companies Slumped by $2.8B in a Month

August 22, 9:04 am

August brought new pressure on the crypto market, with investors becoming more cautious after the latest DeFi hack and another federal court decision on whether to treat cryptos as securities. The price of the world`s largest and most expensive cryptocurrency, Bitcoin, is down by 5% month-over-month, reaching $28,530 last week. Ethereum`s value dropped by 6% to around $1,800 at the time of writing.

The latest drop in the crypto market also had a huge impact on the crypto mining companies, which lost billions of dollars in a matter of weeks.

According to data presented by AltIndex.com, the world`s five largest crypto mining companies have collectively lost $2.8bn in market cap month-over-month.

Hut 8 Mining and Cipher Mining Suffered the Biggest Drop, with their Stock Values Plunging by 32%

Over the past eight months, crypto mining companies significantly recovered from the crypto winter, which halved their market caps and erased billions in stock values. But after six months of rising stock prices, July and August brought new losses.

According to Ycharts and Companies Market Cap data, the combined market cap of Riot Blockchain, Marathon Digital Holdings, Canaan Inc., Hut 8 Mining, and Cipher Mining Technologies, the world`s five largest crypto mining companies, amounted to over $9.5bn in July. This figure slumped by 30% since then, falling to $6.7bn last week.

The world`s largest crypto miner, Riot Blockchain, has lost 31% or $1.08bn in stock value month-over-month. Marathon Digital Holdings, the second largest company, saw its market cap drop by $790 million or 25% in a month. Canaan Inc. follows with a 16% stock value drop. The market cap of a Chinese crypto mining company stood at roughly $550 million in July, and now it`s around $460 million.

Still, that is nothing compared to the losses of Hut 8 Mining and Cipher Mining. Statistics show both companies saw a 32% market cap drop month-over-month, with more than $400 million wiped off their stock values.

Monthly Crypto Mining Revenue Continues Rising

Although the stock value of the biggest crypto mining companies plunged by 30% in the last month, crypto mining revenues have continued rising.

In January, the miners’ total monthly revenue amounted to $601.2 million, according to TheBlock data. By March, this figure jumped to $755.4 million and continued rising. Statistics show that May saw the biggest monthly crypto mining revenue of nearly $920 million. After falling to $783.7 million in June, revenues recovered to $856 million in July, showing a 43% increase in seven months.

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