Bitcoin's $33,788 surge on Monday catapulted bitcoin-related stocks to new highs, with the likes of Coinbase and MicroStrategy hitting new multi-week highs.
Bitcoin mining stocks saw significant gains amid BTC's price movement, with US-listed Riot Blockchain posting an 11.69% gain and Marathon Digital Holdings posting a 14.6% gain. The upcoming halving event, which will reduce the bitcoin mining reward from 6.25 BTC to 3.125 BTC per block, probably contributed to the price increase.
Bitcoin mining stocks have not only outperformed Bitcoin in recent price gains, but also in terms of year-to-date (YTD) gains. Cipher Mining is up 356% year-to-date compared to Bitcoin's 86% year-to-date gains. Similarly, Riot Platforms saw a 163.10% year-over-year increase and Northern Data, a general processing unit miner based in Frankfurt, Germany, rose 291.40%. Hut 8 Mining, Iris Energy, Bitfarms, Marathon Digital, and Hive Technologies all saw more than 100% growth in 2023.
In addition to public bitcoin mining companies, other public bitcoin-focused companies such as Coinbase and MicroStrategy also hit multi-week highs. Coinbase shares are up 3.42% at the time of writing, while MicroStrategy — the public company holding the most bitcoin — is up 9% on the daily charts.
MicroStrategy's Bitcoin holdings are back in the green for a third time in 2023. The gain on BTC holdings comes after being in the red by as much as -50% during the bear market. MicroStrategy currently holds 158,245 BTC, bought $4.68 billion at an average price of $29,582. The public company's investment is currently valued at $5.5 billion — representing nearly $1 billion in unrealized gains.
On October 23, the price of Bitcoin broke the $35,000 mark with a double-digit gain, taking the price to a one-year high before returning below $33,000. Earlier on October 24, the price of BTC rose another 5% and was trading above $34,500 at the time of writing.