As BTC prices rebounded, MicroStrategy and Bitcoin mining stocks rose

Bitcoin (Bitcoin) After the bulls confirmed their intention to fully control the market, the price soared to a 3-month high of $46,293. Although cryptocurrency traders may be in the green again, and professional traders are seeking to increase their leveraged positions, not all types of investors have direct access to Bitcoin.

For institutional investors, fund managers have set rules for the percentage of investment portfolios in various asset classes, and different companies have different risk preferences. Reasons why investors may flock to these assets instead of just holding BTC include the aforementioned restrictions and regulatory uncertainty surrounding the direct purchase of Bitcoin.

As a result, many entities are restricted from investing directly in Bitcoin and other cryptocurrencies, but there are other ways to reach the crypto industry.

Companies that specialize in Bitcoin mining have also generated huge profits. A few companies have gone public, which may be an offsetting effect for investors hoping to gain some BTC exposure in their stock portfolios.

China’s recent miner crackdown has led to a more decentralized mining network and triggered several rounds Fundraising and expansion For listed Bitcoin mining companies that may benefit from the reshaping of the Bitcoin global mining network, this reshaping may continue for several years. The following are some of the listed companies that provide investors with exposure to Bitcoin.

MicroStrategy’s bet on Bitcoin boosts stock prices

The software company MicroStrategy (MSTR) and its CEO Michael Saylor are well known in the cryptocurrency space for their strong support for Bitcoin as a store of value and the large amount of BTC the company purchased last year.

In addition to helping to promote the prospects of Bitcoin and blockchain technology to the world, MicroStrategy has also accumulated a Bitcoin investment portfolio More than 105,000 BTC In its treasury as a way to hedge against inflation.

Therefore, MicroStrategy’s stock price is somewhat correlated with the price performance of BTC, and it has been observed to move in sync with the top cryptocurrencies.

MSTR/USD 1-day chart. source: Transaction view

As shown in the figure above, the price of MSTR hit a low of $474 on July 20, the same day as Bitcoin’s low, and has since risen by 65% ​​to a transaction price of $781.

Bitcoin mining stocks soar

Public companies specializing in Bitcoin and cryptocurrency mining have also benefited from the price increase of BTC.

Perhaps the most famous Bitcoin mining company is Riot Blockchain, which operates a warehouse full of ASIC miners to help process transactions on the network in exchange for BTC rewards.

RIOT/USD 4-hour chart. source: Transaction view

Since hitting a low of $23.86 on July 20, the price of RIOT has risen 66% and reached an intraday high of $39.94 on August 9.

related: As more and more cryptocurrency companies are eager to go public, coin prices have failed to impress people

Another company that focuses on Bitcoin mining and buying BTC through its treasury assets is Marathon Digital Holdings (MARA).

MARA/USD 4-hour chart. source: Transaction view

Data from TradingView shows that after hitting a low of $20.52 on July 20, the price of MARA rose by 83% to an intraday high of $37.77 on August 6, becoming the best performing Bitcoin mining stock in the past two weeks. .

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Every investment and trading action involves risk, and you should conduct your own research when making a decision.