Bitcoin Reaches $50.3K Milestone, Sparking Rally in MicroStrategy and Mining Stocks
Bitcoin’s recent surge past $50,000 on February 12 is not only making waves in the world of cryptocurrency but also in the stock market. This surge has not only benefited Bitcoin itself but has also led to significant gains for MicroStrategy (MSTR) and various Bitcoin mining stocks.
MicroStrategy, led by Michael Saylor, saw an impressive 11% increase in its stock (MSTR) within just 24 hours, reaching a value of $719. Over the past week, MSTR has gained a staggering 33%. This success can be attributed to MicroStrategy’s strong belief in Bitcoin as a digital asset and store of value. The company currently holds a massive 190,000 BTC in its treasury, valued at $8.1 billion, which serves as a strategic hedge against inflation. In January, MicroStrategy acquired an additional 850 BTC for $37.2 million, further strengthening its Bitcoin holdings.
The chart analysis indicates that on February 12, the same day Bitcoin reached its all-time high of $50,363, MSTR also reached an intraday high of $712. This suggests a robust relationship between the price movements of MicroStrategy and Bitcoin, with a strong correlation coefficient of 0.94.
The positive momentum generated by Bitcoin’s surge is also benefiting Bitcoin mining stocks, resulting in significant gains. Riot Platforms (RIOT), a major player in Bitcoin mining, experienced an outstanding 55% gain over the past week. After hitting a low of $9.64 on January 19, RIOT’s price surged by 70%, reaching an intraday high of $16.35 on February 12. Marathon Digital Holdings, another heavyweight in Bitcoin mining, posted an impressive 60% gain in the last seven days. Hive Blockchain Technologies (HIVE) also saw a notable 28% increase in its stock price during the same period. The MVIS Global Digital Assets Mining Index even showcased a remarkable 108% surge in 2024.
Despite the challenges posed by increased mining difficulty levels, Bitcoin’s price surge has played a crucial role in boosting miners’ profits. Bitcoin’s mining difficulty level hit an all-time high of 75.50 trillion hashes on February 12, showcasing the network’s strength. However, miners have still reaped the rewards of Bitcoin’s price surge. The Luxor Hashprice Index, which measures a miner’s earnings from the power used on the Bitcoin blockchain, recorded a notable 16% increase this week. This upward trend reflects the positive outlook for miners due to the rising value of Bitcoin.
Bitcoin’s climb past $50,000 is not only a significant milestone for the leading cryptocurrency but has also sparked optimism in related stocks.