Bitcoin's Surge Positively Influences Crypto and Mining Stocks as MicroStrategy Records Major Gains
Summary:
Bitcoin's surge to a two-year high significantly impacted both crypto and mining stocks with MicroStrategy and crypto-mining stocks recording double-digit gains. MicroStrategy's significant holding of Bitcoin has resulted in an 11% rise in shares, hitting $719 in the last 24 hours and totaling to a 33% rise over a week. Similarly, Bitcoin mining stocks, following Bitcoin's positive trend, showed substantial gains. Despite the increased difficulty level for Bitcoin mining, rising Bitcoin prices improved miner profitability.
The recent surge of Bitcoin (BTC) to a two-year peak of $50,363 on February 12 has spurred a good effect on cryptocurrency and related mining shares. Over the past week, MicroStrategy (MSTR) and stocks in cryptocurrency mining recorded substantial gains, drawing a similar pattern to Bitcoin's 17.5% rise in this term. MSTR showcased an 11% rise in stocks, hitting $719 in the last 24 hours, with an aggregate growth of 33% in the past seven days.
MicroStrategy, under the aegis of its founder and chairman Michael Saylor, is distinguished for its belief in Bitcoin as a digital gold, a dependable reserve of value, and for the massive Bitcoin hoard held by the company. At this point, the company's treasury safeguards 190,000 BTC, equivalent to $8.1 billion, as a safeguard against inflation. The firm made an additional investment in buying 850 BTC for $37.2 million in January, revealed by Saylor's social media post.
MicroStrategy was the pioneer of public trading firms to incorporate Bitcoin in its balance sheet in December 2020. Post that, its stock price rose more than threefold, depicting growth parallel to the original cryptocurrency, indicating a potent correlation between MSTR and Bitcoin. On February 12 Bitcoin achieved a similar high at $50,363, as MSTR price touched $712, accentuating a strong link between the two.
Bitcoin mining stocks, too, followed suit with Bitcoin's recent bullish trend. Riot Platforms (RIOT) — a prominent Bitcoin mining firm in terms of market cap reported a rise of 55% over the former week. After plunging to $9.64 on January 19, the price of RIOT rebounded by 70%, reaching a high of $16.35 on February 12.
Bitcoin miner Marathon Digital Holdings reported a 60% rise over the past week. Hive Blockchain Technologies (HIVE) witnessed its stock price burgeoning 28% in the same duration. Meanwhile, the MVIS Global Digital Assets Mining Index noted a stark rise of 108% so far in 2024. Despite challenging circumstances ahead of the halving, the rising price of Bitcoin improved the bottom line of miners.
Coinwarz data displays that the difficulty level for Bitcoin mining reached an all-time peak of 75.50 trillion hashes on February 12, indicative of the network's maturity and resilience. The Luxor Hashprice Index, quantifying a miner’s income from power spent on the Bitcoin blockchain, witnessed a growth of 16%. This reflects increased rewards due to the surging price of Bitcoin.
This report doesn't dispense investment guidance or suggestions. Each investment involves risk, and decision-making should be underpinned by independent research.
Published At
2/13/2024 12:25:00 AM
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