Bitcoin’s Resurgence: A Boost to Crypto Stocks

The cryptocurrency market is abuzz with excitement as Bitcoin (BTC) surges towards $72,000, just shy of its all-time high of $73,737 reached in March. According to CoinMarketCap data, the largest cryptocurrency by market capitalization is now a mere 3.4% away from its record high.

Bitcoin’s price surge has a positive impact on crypto-related stocks.

This rally has had a profound impact on companies associated with the crypto industry. MicroStrategy (MSTR), a software company, has seen its stock soar over 6%, currently trading at $1,531.67 per share. The company has actively added BTC to its balance sheet this year, holding a staggering $15 billion worth of Bitcoin. Since January, MicroStrategy’s stock has more than doubled, boasting a remarkable 122% gain. Michael Saylor, the co-founder and chairman of MicroStrategy, has advocated that investing in the company’s stock provides a safe way for investors to gain exposure to BTC.

“Investing in MicroStrategy stock is a safe way to gain exposure to BTC.” - Michael Saylor

US-based crypto exchange Coinbase (COIN), the largest crypto exchange in the United States, has also experienced a surge of over 6% in its stock price. The exchange, which went public in 2021, has been performing well this year. In February, Coinbase shared its Q4 2023 results, showing a return to profitability. Currently priced at $255.99 per share, Coinbase’s stock has jumped by over 63% in 2024.

Coinbase’s stock price surges over 6%.

However, Bitcoin mining companies are not seeing significant gains. Hut 8 Corp (HUT) has seen a marginal jump of less than 2% and is currently priced at $9.14 per share. CleanSpark, a company that utilizes green energy for BTC mining, has observed a rise of over 1%, with its stock trading at $15.79.

Bitcoin mining companies see minimal gains.

As the crypto market continues to fluctuate, one thing is certain - Bitcoin’s resurgence has sent shockwaves throughout the industry, boosting crypto stocks and sparking renewed interest in the world of cryptocurrency.