Crypto Company Stocks Are Soaring With Bitcoin Price


Bitcoin price is not the only thing that is rising. The stocks of bitcoin mining firms and other firms associated with the cryptocurrency space are soaring up. The value of shares of crypto-related firms is soaring following the bullish bitcoin rally. Specifically, the bitcoin mining industry has seen substantial growth.

On December 28, the shares of major bitcoin mining firm HIVE Blockchain Technologies surged by 27 percent. Additionally, United States-based RIOT Blockchain also saw its stocks rise by 22 percent while the major American mining company Marathon Patent Group recorded a 12 percent rise in share value. On the other hand, the stocks of Canaan Creatives also rose by 10 percent on many bitcoin trading app

Why is the value of crypto company stocks rising?

The increment in value of crypto-related firm stocks can be attributed to the bullish run by bitcoin over the recent months. After breaking various records all week long, the price of bitcoin recorded a new all-time high after hitting the $28,000 price level last week. The price has since retraced and currently stands at $27,567 at the time of writing.

With interest in bitcoin growing and more people transacting the digital currency, greater mining power is required to confirm transactions to keep the network operating normally. The mining process is expensive and requires a great deal of energy which is currently more  significant than ever before. 

The bitcoin blockchain operates through a network of computer systems that monitor transactions. It is possible to do this using your own PC, but you will face tough competition from more sophisticated and faster computers. These computers rival each other to confirm a BTC transaction faster than the others in the network, and the victor gets rewarded using new bitcoin. This procedure is referred to as bitcoin mining.

All aforementioned bitcoin mining firms generate revenue by mining bitcoin. Although each firm has its unique expenditure plan, they have all been struggling to generate profits over the past several years. In recent times, as the price of mining a bitcoin shot up, the price of bitcoin remained stagnant. 

When the price of bitcoin struggles to rise up rapidly, mining becomes unprofitable. Mining firms can control the energy consumption and cost, but one thing that is out of their control is the price of bitcoin. 

Since the beginning of September, the price of bitcoin has more than doubled to record a new ATH. Mining companies have reaped huge profits from the increased bitcoin network activity and transactions. These companies now have the opportunity to massively profit due to the recent bull run with their stocks shooting up. 

Companies investing in BTC are also thriving

Companies that have decided to invest in digital assets have also made substantial gains. MicroStrategy which has massively invested in bitcoin saw its stock rise by up to 16 percent over the last 48 hours. Amplify Transformational Data Sharing which has stakes in crypto companies such as Hut 8, Square and Galaxy Digital also saw its stocks surge by approximately 15 percent through December.

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