Bitcoin price surge drives BTC-related stocks to new multiweek highs
Monday’s Bitcoin (BTC) price surge has catapulted Bitcoin-related stocks to new heights, with the likes of Coinbase and MicroStrategy posting new multiweek highs.
Bitcoin mining stocks saw significant gains amid BTC price momentum, with United States-listed Riot Blockchain recording an 11.69% surge and Marathon Digital Holdings seeing a 14.6% increase. The upcoming halving event, which will cut the Bitcoin mining reward from 6.25 BTC to 3.125 BTC per block, also likely contributed to the price increase.
Bitcoin mining stocks not only outperformed Bitcoin in the recent price rally but also in terms of year-to-date (YTD) gains. Cipher Mining has seen an increase of 356% YTD vs. Bitcoin’s 86% YTD gains. Similarly, Riot Platforms has registered a 163.10% YTD increase, and Northern Data, a general processing unit miner with headquarters in Frankfurt, Germany, has increased by 291.40%. Hut 8 Mining, Iris Energy, Bitfarms, Marathon Digital and Hive Technologies have all registered more than 100% growth in 2023.
Apart from public Bitcoin mining companies, other Bitcoin-centric public firms such as Coinbase and MicroStrategy also posted multiweek highs. Coinbase’s stock was up by 3.42% at the time of writing, while MicroStrategy — the public company holding the most Bitcoin — recorded a 9% surge on the daily charts.
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MicroStrategy’s Bitcoin holding is back in the green for the third time in 2023. The profit on its BTC holdings comes after being in the red by as much as -50% during the bear market. MicroStrategy currently holds 158,245 BTC, bought for $4.68 billion at an average price of $29,582. The public company’s investment is currently worth $5.5 billion — amounting to nearly $1 billion in unrealized gains.
The Bitcoin price breached the $35,000 mark on Oct. 23 with a double-digit surge, taking the price to a one-year high before retracing below $33,000. Earlier on Oct. 24, the BTC price surged another 5% and traded above $34,500 at the time of writing.
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