Bitcoin mining stocks dwarf Bitcoin’s gains amid short squeeze buzz Quick Take
Bitcoin mining stocks have seen a remarkable performance in 2023, outpacing Bitcoin’s already impressive 160% YTD surge. Key mining players, including Hive and Marathon Digital Holdings, have recorded skyrocketing growth figures at an astonishing 274% and 767% YTD, respectively.
Data from Fintel points to an intriguing phenomenon – a significant percentage of short interest in these mining stocks, corroborated by analyst Mortensen Bach. This short interest has added momentum to their upward trajectory. CryptoSlate observed a divergence a few months prior between miners and Bitcoin’s price, a trend that has now caught up and exceeded the Bitcoin price.
| Mining Stock | Short Interest % |
|---|---|
| $HUT | 32.74% |
| $WULF | 22.58% |
| $MARA | 22.60% |
| $CIFR | 20% |
| $RIOT | 18.16% |
| $BTBT | 13.73% |
| $CLSK | 8.42% |
| $SDIG | 7.20% |
| $BITF | 6.51% |
| $HIVE | 5.25% |
| $IREN | 4.01% |
| $BTDR | 3.13% |
| $MSTR | 20.93% |
Source: Fintel
The Bitcoin mining proxy, WGMI, has surged 143% in the past three months, compared to Bitcoin’s 64% increase. The interplay of high short interest and rising prices on these mining stocks suggests a potential short squeeze scenario playing out. As prices continue to climb, shorts may be closing their positions, propelling prices upwards.
Analyst 
James Van Straten
James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.
In this insight
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Marathon Digital
Marathon Digital Holdings is a digital asset technology company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets.
