Key Points
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For crypto mining companies, a Bitcoin crash isn’t necessarily a bad thing.
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Mining gets less popular as crypto prices drop, allowing mining companies to stock up.
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Some mining companies also now invest in Bitcoin outright.
You might not expect crypto stocks to do better as crypto prices fall. But there is a type of crypto company that bucks conventional wisdom: mining companies, meaning those that use computing power to validate blockchain transactions and earn rewards.
Several of the biggest mining companies, including MARA Holdings(NASDAQ: MARA), Cipher Mining, and TeraWulf, are up big over the last month, even as Bitcoin has dipped by 1%. Even though these companies are all Bitcoin miners, there’s a simple reason they can do well even if its price drops.
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