Mining stocks are showing surprising resilience, posting modest gains in after-hours trading despite the generally weaker performance in the crypto market. As Bitcoin trades near the pivotal threshold of $87,000, it is essential to explore the intricacies behind these movements and gauge the broader context that shapes investor sentiment and market behavior.
- Bitcoin hovered around $87,000, down about 1% over the last 24 hours.
- Prediction markets are gaining traction, with Coinbase and Gemini expanding in this arena.
- ZOOZ Power faced a Nasdaq deficiency notice after shares fell below $1, showcasing challenges for small-cap companies holding Bitcoin as treasury assets.
Despite Bitcoin’s fluctuations, which saw it diminutively down 1.1% to about $87,170, miners demonstrated a level of stability in after-hours trading on Tuesday. Companies such as Cipher Mining (CIFR), Bit Digital (BTBT), Riot Platforms (RIOT), CleanSpark (CLSK), and Hut 8 (HUT) all exhibited gains post-trading. Particularly noteworthy is Forward Industries (FWDI), focusing on Solana (SOL)-based assets, which surged by 1.93%, while Strive (ASST) also reported a gain of 1.22%.
What’s The Rest Of The Market Doing?
The broader equity market presented a mixed bag after market closure. The SPDR S&P 500 ETF Trust (SPY) crawled up by 0.04%, following a modest day-long gain of 0.46%. Conversely, the SPDR Dow Jones Industrial Average ETF (DIA) slipped by 0.05% after a slight gain earlier. The Nasdaq-100 tracking Invesco QQQ Trust (QQQ) managed a subtle rise of 0.03% following a 0.47% gain previously. Interestingly, Stocktwits sentiment surrounding QQQ lingered in the ‘bearish’ territory, accentuating some investor caution.
On the cryptocurrency front, the market itself faced a 1.2% decline over the last 24 hours, with most major assets trading within a narrow range. According to CoinGlass data, approximately $256 million in liquidations transpired within this time frame. The overall sentiment on Bitcoin was markedly ‘extremely bearish’ on Stocktwits, compounding the challenges for some investors.
Mining Stocks Lean On AI Infrastructure Narrative
The dynamics surrounding mining stocks have increasingly decoupled from immediate Bitcoin price fluctuations. The narrative is shifting towards the growing intersection between Bitcoin mining operations and the burgeoning demand for data center infrastructure linked to artificial intelligence (AI) workloads. As Bitcoin mining has evolved to become more capital-intensive due to ongoing increases in network difficulty, miners have had to pivot towards operating power-intensive facilities that complement demand from hyperscale cloud services and AI applications.
Prediction Markets Buzz Continues To Build
In a notable move, Coinbase (COIN) announced plans to acquire The Clearing Company, a firm focused on prediction markets and regulated on-chain financial products. This acquisition could potentially bolster Coinbase’s capabilities in an area that shows promise for growth. The deal is set to close in January pending customary conditions, with no financial details disclosed. In after-hours trading, COIN fell by 0.33% after a daily gain of 2.26%, yet retail sentiment around it remained bullish, reflecting optimism despite the minor setback.
Gemini (GEMI) is similarly expanding its offerings in the prediction markets space, unveiling new contracts tied to various real-world events spanning sports and politics. These new additions include market predictions for Most Valuable Player awards and control of legislative bodies. Post-market, GEMI slid by 0.9% after facing a 5.54% dip in regular trading. Retail sentiment, however, remained bearish, indicating areas of concern for the company’s outlook among investors.
DATs In Trouble
ZOOZ Power (ZOOZ) recently received a deficiency notice from Nasdaq due to its share price falling below the crucial $1 minimum requirement. The company’s strategy includes holding over 1,000 bitcoins as treasury assets; however, it is now facing obstacles alongside other small-cap entities struggling under similar pressures. ZOOZ has until June 2026 to regain compliance and is contemplating possible measures, including a reverse stock split. In after-hours trading, ZOOZ’s stock fell more than 2%, although retail sentiment remained somewhat bullish, showing a relatively optimistic perspective amid challenging circumstances.
Read also: Bitcoin Dips, Ethereum Slides Under $3,000 As GDP Data, Fed Signals Come Into Focus
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