Bitcoin Price Surge Fuels Record Highs in Bitcoin-Related Stocks and Mining Profits
Summary:
The Bitcoin price surge triggered record highs in Bitcoin-related stocks such as Coinbase and MicroStrategy. Listed mining stocks, including Riot Blockchain and Marathon Digital Holdings, also experienced significant gains due to the Bitcoin price momentum and the upcoming halving event. Notably, Bitcoin mining stocks outpaced Bitcoin itself in terms of both daily price rally and year-to-date profits. Besides mining firms, other Bitcoin-focused public companies like MicroStrategy and Coinbase also recorded multi-week highs. MicroStrategy's Bitcoin holdings have returned to profitability for the third time this year with almost $1 billion in unrealized gains.
The skyrocketing price of Bitcoin (BTC) on Monday instigated a surge in Bitcoin-related stocks, setting new records with companies like Coinbase and MicroStrategy hitting new multi-week peaks. As the BTC price momentum continued, Bitcoin mining stocks like U.S.-based Riot Blockchain have seen considerable increases, with an 11.69 % upswing, trailed closely by Marathon Digital Holdings with a 14.6% boost. The approaching halving event, which will reduce the Bitcoin mining reward from 6.25 BTC to 3.125 BTC per block, is another major contributor to the acceleration of mining stocks.
The chart of Marathon Digital's stock price. Source: TradingView
Concerning daily price rally and year-to-date profits, Bitcoin mining stocks outshone Bitcoin itself. Cipher Mining Inc. experienced a year-to-date boost of 356%, compared to Bitcoin's 86% surge. Riot Platforms too, saw a year-to-date increase of 163.10%, while Frankfurt-based GPU miner Northern Data AG showed a growth rate of 291.40%. Other companies with over 100% growth this year include Hut 8 Mining Corp, Iris Energy, Bitfarms, Marathon Digital and Hive Technologies.
Apart from open Bitcoin mining firms, other Bitcoin-focused public entities like Coinbase and MicroStrategy also attained multi-week peaks. At the time of print, Coinbase's stocks climbed by 3.42% and MicroStrategy, the major Bitcoin-holding public company, marked a 9% daily surge.
Related: What could be the peak Bitcoin price by 2024?
For the third time this year, MicroStrategy's Bitcoin inventory is back in the profit zone. Despite being down by as much as 50% during the bear market, the company's investment is now worth $5.5 billion, leading to almost $1 billion in unrealized profit. The company's current 158,245 BTC holdings, acquired at an average price of $29,582, represent an investment of $4.68 billion.
MicroStrategy's stock price chart. Source: TradingView
On Oct. 23, Bitcoin's price jumped past the $35,000 milestone with a double-digit surge, setting a new one-year high before falling below $33,000. Earlier today, Bitcoin's price surged once again by 5% and is presently trading over $34,500.
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Published At
10/24/2023 1:34:16 PM
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