Dado Ruvic/ReutersSummary List Placement
Bitcoin-mining stocks sank across the board on Friday as the cryptocurrency struggled to reclaim the $50,000 per-coin level.
Companies associated with bitcoin, including Michael Saylor's MicroStrategy also fell as much as 13% and 15%, respectively.
Bitcoin is now down nearly 20% from its February 21 record high of $58,332.36. Still, the cryptocurrency has risen roughly 425% over the past year.
Despite falling share prices and bitcoin's recent drop, cryptocurrency miners continued to add to their mining capacity over the past few months.
On February 1, Marathon Patent Group announced Bitmain had added 4,000 S-19 Pro Antminers to the firm, more than doubling the amount of Antminer's the company had. The new additions will push Marathon's mining capacity to 1.4 exahash per second by the end of March.
On February 11, Riot Blockchain announced it will achieve an estimated hash rate mining capacity of 1.06 exahash per second with the deployment of its newly received 2,002 S19 Pro Antminers.
And Hive Blockchain Technologies announced it doubled bitcoin mining capacity in a March 2 earnings report for the third quarter of the fiscal year 2021.
Although bitcoin miners continue to make significant progress on their mining capacity, their valuations may have become stretched in many investors' eyes.
Marathon Patent Group trades at 258x trailing 12-month sales. While Riot Blockchain trades at 183x sales and Hive Blockchain Technologies trades at 33x sales.
For reference, the S&P 500, which tracks the performance of the 500 largest companies in the market, trades at 2.7x trailing 12-month sales.
NOW WATCH: What candy corn is actually made of
- Warren Buffett didn't mention SPACs, crypto, or meme stocks in his annual letter. Buffett scholar Lawrence Cunningham explains how the billionaire still managed to warn investors about them.
- SPACs are trying to stand out in a sea of blank-check listings. Here's what 4 high-profile backers are doing to make their IPOs more attractive to investors.
- Warren Buffett says bond investors face a 'bleak future' as yields remain near historic lows