- Notable names like Coinbase and MicroStrategy hit new multi-week highs, reflecting the growing excitement around cryptocurrencies. The increase in Bitcoin’s price has translated into significant gains for Bitcoin mining stocks.
- Not only have they outperformed Bitcoin in the recent price rally, Bitcoin mining stocks have also displayed notable gains since the beginning of this year (YTD).
- Publicly traded Bitcoin mining companies, as well as other Bitcoin-focused companies such as Coinbase and MicroStrategy, also hit multi-week highs.
Following the recent rally in Bitcoin price, stocks of Bitcoin-focused companies and Bitcoin mining companies have experienced significant increases!
Bitcoin-Linked Stocks Rising After Bitcoin
In the recent price rally, Bitcoin-related stocks surged to record levels following Bitcoin’s remarkable uptrend. Notably, notable names like Coinbase and MicroStrategy reached new multi-week highs, reflecting the increasing excitement around cryptocurrencies. The rise in Bitcoin’s price has translated into significant gains for Bitcoin mining stocks.
Shares of Riot Blockchain, a publicly traded company in the US, rose by 11.69%, while Marathon Digital Holdings experienced a significant increase of 14.6%. Some of this impressive performance can be associated with the upcoming Bitcoin halving event, which will reduce the mining reward from 6.25 BTC to 3.125 BTC, potentially increasing scarcity and demand.
Not only did Bitcoin mining stocks outperform Bitcoin in the recent price rally, but they have also shown significant gains since the beginning of the year (YTD). For instance, Cipher Mining witnessed an incredible YTD increase of 356%, far surpassing Bitcoin’s 86% YTD gains.
Similarly, Riot Platforms recorded an outstanding YTD increase of 163.10%, and Northern Data, a Frankfurt-based general transaction processor, experienced an impressive 291.40% increase. Other companies like Hut 8 Mining, Iris Energy, Bitfarms, Marathon Digital, and Hive Technologies posted growth rates of over 100% in 2023.
Shares of other companies, including miners, are also gaining
Besides publicly traded Bitcoin mining companies, other Bitcoin-focused firms like Coinbase and MicroStrategy also reached multi-week high levels. Coinbase’s shares showed an increase of 6.29%, while MicroStrategy, one of Bitcoin’s leading holders, recorded a notable 12.55% increase on daily charts.
MicroStrategy’s investment in Bitcoin has experienced a fluctuating trajectory in 2023. Despite losing up to 50% in the bear market, the company managed to make its Bitcoin holdings profitable. Currently holding 158,245 BTC acquired for an average price of $29,582, totaling $4.68 billion, MicroStrategy’s investment is now worth $5.5 billion, making almost $1 billion in unrealized gains.
After reaching a one-year high above $35,000 on October 23, Bitcoin dropped below $33,000. Just a day later, on October 24, Bitcoin traded above $34,500, marking a 5% increase at the time of writing. These price movements continue to capture the attention of investors and enthusiasts in the cryptocurrency space.
