According to CryptoPotato, Bitcoin mining companies have experienced significant growth in 2023, with nearly all publicly-traded firms soaring over 100% since January 1. This growth has been driven by both the rising value of Bitcoin and positive business developments within the industry. Shares for Marathon Digital (MARA), one of the largest public miners by hashrate, are currently up 158% year to date, while rivals Iris Energy (IREN) and Riot Platforms (RIOT) have surged 168% and 186% respectively.

Bitcoin's value has increased by 90% in 2023, largely due to a series of U.S. bank failures in March that shook confidence in the traditional financial system. Additionally, excitement surrounding the potential approval of a spot Bitcoin ETF before the end of the year has contributed to the cryptocurrency's rally. Bitcoin mining companies earn money by running powerful and expensive computer equipment to mine Bitcoin's next block, which contains a fixed portion of new BTC. As the value of Bitcoin rises, so does the dollar-denominated value of their rewards and profits.

The mining industry has made unique strides this year to boost its value proposition to investors. Firms like CleanSpark (CLSK) have announced multiple major investments in the latest Bitcoin mining hardware, bolstering their capacity to win new BTC. These investments have helped drive Bitcoin's total hashrate to many new highs this year and lowered the cost of old mining hardware that has become less efficient over time. Furthermore, miners are diversifying their operations, with companies like Iris, HIVE, and Applied Digital moving beyond Bitcoin mining and into cloud computing and HPC services using their existing infrastructure. These firms claim that such services are much more profitable per unit of energy than Bitcoin mining.