Bitcoin’s recent surge to $50,363 has had a positive impact on both crypto and mining stocks. MicroStrategy and other mining companies have seen significant gains in the past week, closely mirroring Bitcoin’s 17.5% increase during the same period.
MicroStrategy, known for its support of Bitcoin as a digital gold and store of value, has experienced an 11% increase in its shares in the last 24 hours, reaching $719. Over the past seven days, the company’s shares have gained 33%. MicroStrategy currently holds 190,000 BTC, valued at $8.1 billion, as a hedge against inflation. The company recently acquired an additional 850 BTC for $37.2 million in January.
MicroStrategy became the first publicly listed firm to add Bitcoin to its balance sheet in December 2020. Since then, its share price has grown by more than 300%, showing a strong correlation with Bitcoin’s performance.
Bitcoin mining stocks have also followed the bullish trend of Bitcoin’s price. Riot Platforms, one of the largest Bitcoin mining firms, has seen a 55% increase in the past week. Similarly, Marathon Digital Holdings has posted 60% gains, and Hive Blockchain Technologies has witnessed a 28% rise in its stock price. The MVIS Global Digital Assets Mining Index has surged by 108% in 2024.
The increase in Bitcoin’s price has made mining more profitable, despite the growing difficulty of mining due to the upcoming halving. The rise in mining difficulty reflects the maturity and strength of the Bitcoin network, attracting investments from miners who aim to remain profitable despite the expected decrease in block rewards. On February 12, the mining difficulty reached an all-time high of 75.50 trillion hashes.
Although mining conditions have become more challenging, the Luxor Hashprice Index has increased by 16% this week, indicating higher rewards for miners due to the price growth of Bitcoin.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.