Bitcoin mining stocks soar on the back of BTC price momentum
The recent surge in the price of Bitcoin (BTC) has not only sent the cryptocurrency to new heights, but it has also propelled Bitcoin-related stocks to reach new highs. Companies like Coinbase and Microstrategy have seen their stock prices skyrocket in response to Bitcoin's upward trajectory.
Upcoming halving event adds fuel to the mining stocks surge
Bitcoin mining stocks have experienced significant gains alongside the rise in BTC prices. United States-listed companies like Riot Blockchain and Marathon Digital Holdings have seen their stock prices increase by 11.69% and 14.6% respectively. One contributing factor to this surge is the upcoming halving event, which will reduce the Bitcoin mining reward from 6.25 BTC to 3.125 BTC per block.
Mining stocks outperform Bitcoin in year-to-date gains
Not only have Bitcoin mining stocks outperformed Bitcoin in terms of daily price rallies, but they have also surpassed the cryptocurrency in year-to-date gains. For example, Cipher Mining Inc. has seen a 356% increase in its stock price this year, compared to Bitcoin's 86% YTD gains. Riot Platforms and Northern Data AG have also experienced significant growth, with YTD increases of 163.10% and 291.40% respectively. Several other mining companies, including Hut 8 Mining Corp, Iris Energy, Bitfarms, Marathon Digital, and Hive Technologies, have also registered more than 100% growth this year.
Coinbase and MicroStrategy reach multi-week highs
It's not just public Bitcoin mining companies that have benefited from Bitcoin's surge. Other Bitcoin-focused public firms, such as Coinbase and MicroStrategy, have also seen their stock prices reach multi-week highs. At the time of publishing, Coinbase's stocks were up by 3.42%, while MicroStrategy recorded a 9% surge on the daily charts.
MicroStrategy's Bitcoin holdings back in profit
MicroStrategy, the largest Bitcoin-holding public firm, has seen its investment in BTC turn profitable for the third time this year. After experiencing a 50% loss during the bear market, the company's Bitcoin holdings are now in the green. MicroStrategy currently holds 158,245 BTC, which were purchased at an average price of $29,582, with a total investment of $4.68 billion. The value of their investment is now worth $5.5 billion, resulting in nearly $1 billion in unrealized gains.
Bitcoin price surges above $35,000
The price of Bitcoin breached the $35,000 mark on October 23rd, reaching a one-year high before retracing below $33,000. Today, BTC surged another 5% and is currently trading above $34,500.
