Monday’s dramatic surge in the price of Bitcoin has propelled Bitcoin-related stocks to unprecedented heights. Notable names like Coinbase and MicroStrategy have hit fresh multiweek highs, reflecting the growing enthusiasm around cryptocurrencies.
The surge in Bitcoin’s price has translated into significant gains for Bitcoin mining stocks. Riot Blockchain, a U.S.-listed company, saw its stock soar by 11.69%, while Marathon Digital Holdings witnessed a substantial 14.6% increase.
This impressive performance can partially be attributed to the upcoming Bitcoin halving event, which will reduce the mining reward from 6.25 BTC to 3.125 BTC per block, thereby increasing scarcity and potentially driving up demand.
In addition to outperforming Bitcoin in the recent price rally, Bitcoin mining stocks have also displayed remarkable year-to-date (YTD) gains.
For instance, Cipher Mining has seen an astounding YTD increase of 356%, far surpassing Bitcoin’s YTD gains of 86%.
Similarly, Riot Platforms has recorded a remarkable 163.10% YTD increase, and Northern Data, a Frankfurt-based general processing unit miner, has surged by an impressive 291.40%.
Other companies such as Hut 8 Mining, Iris Energy, Bitfarms, Marathon Digital, and Hive Technologies have all posted growth rates exceeding 100% in 2023.
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Apart from publicly traded Bitcoin mining companies, other Bitcoin-focused firms like Coinbase and MicroStrategy have also reached multiweek highs.
Coinbase’s stock showed a 3.42% increase at the time of writing, while MicroStrategy, a prominent holder of Bitcoin, registered a substantial 9% gain on the daily charts.
MicroStrategy’s investment in Bitcoin has experienced a roller-coaster ride in 2023.
Despite being in the red by as much as -50% during the bear market, the company has managed to bring its Bitcoin holdings back into profitability.
Currently holding 158,245 BTC, which were acquired for $4.68 billion at an average price of $29,582,
MicroStrategy’s investment is now valued at $5.5 billion, resulting in nearly $1 billion in unrealized gains.
On October 23, the price of Bitcoin surged past the $35,000 mark, reaching a one-year high, before retracing below $33,000.
Just a day later, on October 24, Bitcoin experienced another 5% surge, trading above $34,500 at the time of writing.
These price movements continue to captivate the attention of both investors and enthusiasts in the cryptocurrency space.
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