BTC Price Soars: Bitcoin Miners and MicroStrategy Stock Rally

Bitcoin’s recent surge to a two-year high of $50,363 on February 12 has had a positive impact on both cryptocurrency and mining stocks. One notable beneficiary is MicroStrategy (MSTR), whose shares rose by 11% in the past 24 hours to reach $719. Over the last week, MSTR shares have gained 33%, following the upward trajectory of BTC, which saw a 17.5% increase during the same period. MicroStrategy has made headlines for its strong support of Bitcoin, with the company holding a significant amount of BTC as a hedge against inflation. Its shares have shown a strong correlation with BTC, with a correlation coefficient of 0.94 indicating a close relationship between their price movements.

Bitcoin mining stocks have also experienced growth in line with the surge in BTC’s price. Riot Platforms (RIOT), one of the largest Bitcoin mining firms, recorded a 55% gain in the past week. Similarly, Marathon Digital Holdings and Hive Blockchain Technologies saw gains of 60% and 28% respectively. The MVIS Global Digital Assets Mining Index, which tracks the performance of mining stocks, has risen by 108% in 2024 so far. The rise in BTC’s price has increased mining profitability, despite the challenges posed by the upcoming halving. This increase in mining difficulty demonstrates the maturity and strength of the Bitcoin network, as miners continue to invest in infrastructure to maintain profitability.

Despite the higher mining difficulty, miners have seen increased rewards due to the growth in BTC’s price. The Luxor Hashprice Index, which measures a miner’s earnings relative to the power used on the Bitcoin network, has increased by 16% this week. This reflects the higher profitability resulting from the surge in BTC’s price.