The MVIS Global Digital Assets Mining Index, which includes data on the top 20 miners such as Riot Blockchain, Galaxy Digital, Bitfarms and Iris Energy, has risen 64% since the beginning of January 2023. This month, the indicator posted its biggest increase since its inception in December 2021, Bloomberg reported. At the same time, Bitfarms securities rose more than 140%, Marathon Digital Holdings shares rose more than 120%, and Hive Blockchain Technologies securities more than doubled.

The growth of miners’ shares was caused by the recovery of bitcoin rate. The first cryptocurrency has risen in value by 26.5% since the beginning of January – from $16,600 to $21,000. On January 16, the bitcoin rate updated the maximum for 4 months, exceeding the mark of $21,400.

Miners’ revenues also increased amid the growth of the crypto market, despite the fact that the complexity of bitcoin mining has increased to record levels and more miners are joining the network, increasing hash rate. The Luxor Hashprice Index – which shows how much revenue a bitcoin miner can expect to earn at a certain hash rate – has grown 21% this year.

However, industry participants note that it’s unclear how long the rise in mining company quotes will last. Cryptocurrency mining companies faced financial difficulties in 2022 and were forced to sell the mined cryptocurrency, return equipment, cut costs and reduce staff.

In September, major hosting service provider Compute North filed for bankruptcy and began financial restructuring. Core Scientific Inc. the largest bitcoin miner by processing power, filed for bankruptcy in December. Argo Blockchain managed to avoid bankruptcy late last year, as the company agreed to sell its Helios mining complex to Galaxy Digital, RBC writes.