By Shelly Melancon (Switzerland)
MARA, RIOT, MSTR stocks, as well as other companies exposed to Bitcoin, have almost tripled in the last three months. Bitcoin (BTC) price hit a 3-month high at $46,293 after the bulls confirmed they intended to take full control of the market. While crypto traders may be in the green again and expert traders are looking to add more substantial leveraged positions, not all classes of investors get direct exposure to Bitcoin.
As regards institutional investors, a fund administrator sets the regulations for what percentage of the portfolio is invested in various asset categories and various companies have varying passions for risk. Investors may be piling into these assets instead of simply holding BTC because of the aforementioned restrictions and the regulatory uncertainty which surrounds the direct purchase of Bitcoin.
As a result, numerous entities are not allowed to invest directly in Bitcoin and other cryptocurrencies, however, there are other ways to achieve exposure to the crypto business. Companies specializing in Bitcoin mining have also produced tremendous profits and a handful are listed and can be an off-set play for investors looking to amass some exposure to Bitcoin (BTC) in their stock portfolios.
The recent crackdown on miners in China led to a more diversified mining network prompting several rounds of fundraising and expansion for listed Bitcoin mining companies that could potentially benefit from the reshaping of Bitcoin’s global mining network that has the potential to continue for years.
Bet on Bitcoin Boosts MicroStrategy’s Stocks
Software company MicroStrategy (MSTR) and its CEO Michael Saylor have become very popular across the cryptocurrency industry. Micheal Saylor is known for his vicious support for Bitcoin as a store of value and the massive amount of BTC the company purchased in the previous year. The company also helps with educating the world about the promise of Bitcoin and blockchain technology.
MicroStrategy has acquired a Bitcoin wallet of over 105,000 BTC in its treasury as a way to hedge against inflation. As a result, MicroStrategy’s stock price has become somewhat correlated with the price performance of BTC and it has been observed to move in tandem with the leading cryptocurrency. As seen in the chart above, the price of MSTR reached a low of $474 on July 20, the same day as the low in Bitcoin, and has since increased 65% to trade at $781.
MSTR/USD 1 day chart – Source: Tradingview
Bitcoin Mining Stocks Rallies
Listed companies specializing in Bitcoin and cryptocurrency mining have also profited from the price growth in BTC. Possibly, the most popular Bitcoin mining firm is Riot Blockchain, a company that manages warehouses full of ASIC miners to help process transactions on the network in exchange for BTC rewards.
RIOT/USD 4-hour chart – Source: TradingView
Since reaching a low figure at $23.86 as at July 20, RIOT’s price has risen 66% and hit an intraday high at $39.94 on August 9. Marathon Digital Holdings (MARA) is another company that focuses on Bitcoin mining as well as purchasing Bitcoin BTC with its treasury holdings. Data from TradingView shows that after hitting a low of $20.52 on July 20, MARA’s price has rallied 83% to an intraday high of $37.77 on August 6, making MARA the top-performing Bitcoin mining stock over the past two weeks.
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