MicroStrategy and Bitcoin mining stocks rally as BTC price rebounds

The latest price action from bitcoin suggests that the historic bull market may be on the cusp of putting in a new high. The price of Bitcoin has rallied from just above $4,000 to the high $5,000s on the back of a number of positive developments. One of the most important of these was the news that Bitfinex, one of the largest cryptocurrency exchanges in the world, may be about to announce a new partnership with one of the top bitcoin mining providers.

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It looks like the headwinds for the Bitcoin price are starting to subside. MicroStrategy (NASDAQ: MSTR ), Bitcoin Investment Trust (NASDAQ: GBTC ) and mining company Cointerra (NYSE: CRC ) all climbed for the third day in a row Thursday, adding to recent gains for the market. MicroStrategy is getting some good news. The company is in final stages of negotiations with a potential buyer for its ServiceNow division (NASDAQ: SNOW ) and will initiate a tender offer for its interest in the division. The transaction is expected to close in the second half of 2017.

As Bitcoin prices climb, the lure of cryptocurrency mining stocks proves irresistible to investors. The market’s recent rally has driven investors to look at the cryptocurrency mining sector—which, as it turns out, has a huge positive correlation to the price of Bitcoin. This is thanks to the fact that Bitcoin mining is a capital-intensive business, and as the market value of the cryptocurrency rises, so too does the value of the company. As a result, the cryptocurrency mining sector has a positive correlation to the Bitcoin price.. Read more about microstrategy stock bitcoin and let us know what you think.

The price of Bitcoin (BTC) surged to a three-month high of $46,293 after bulls declared their intention to seize complete control of the market. While crypto traders may be back in the black, and professional traders are seeking to expand their leveraged holdings, Bitcoin is not accessible to other types of investors. 

A fund administrator determines what proportion of a portfolio should be invested in various asset classes for institutional investors, and different businesses have varied risk tolerances. The aforementioned limitations, as well as the regulatory uncertainties surrounding the purchase of Bitcoin directly, may be driving investors to alternative assets rather than just keeping BTC.

As a result, a lot of organizations are prohibited from investing directly in Bitcoin and other cryptocurrencies, but there are alternative methods to participate in the crypto market. 

Companies that specialize in Bitcoin mining have also made huge profits, and a few of them are publicly traded, making them a good off-set option for investors seeking to include BTC in their stock portfolios. 

The recent Chinese miner crackdown has resulted in a more dispersed mining network, prompting multiple rounds of funding and growth for publicly traded Bitcoin mining firms that may profit from the ongoing restructuring of Bitcoin’s worldwide mining network. Here are a few publicly traded businesses that provide Bitcoin exposure to investors.

MicroStrategy’s Bitcoin gamble has paid off.

MicroStrategy (MSTR) and its CEO Michael Saylor have become well-known in the cryptocurrency community for their unwavering support for Bitcoin as a store of wealth and the huge number of BTC they bought in the previous year.

MicroStrategy has built a Bitcoin portfolio in excess of 105,000 BTC in its treasury as a means to hedge against inflation, in addition to helping educate the world about the potential of Bitcoin and blockchain technology.

As a consequence, the stock price of MicroStrategy has been slightly linked with the price performance of BTC, and it has been seen moving in lockstep with the leading cryptocurrency.

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One-day chart of MSTR/USD. TradingView is the source of this information.

That can be seen in the graph above, MSTR hit a low of $474 on July 20, the same day as Bitcoin hit a bottom, and has since risen 65 percent to trade at $781.

Stocks of bitcoin mining companies are soaring.

The price increase in BTC has also benefitted publicly traded businesses that specialize in Bitcoin and cryptocurrency mining.

Riot Blockchain is the most well-known Bitcoin mining business, with warehouses full of ASIC miners that assist process transactions on the network in exchange for BTC incentives.

1628551326_141_MicroStrategy-and-Bitcoin-mining-stocks-rally-as-BTC-price-rebounds4-hour chart of RIOT/USD. TradingView is the source of this information.

The price of RIOT has risen by 66 percent from reaching a low of $23.86 on July 20 and reached an intraday high of $39.94 on August 9.

COIN price falls short of expectations as more crypto companies seek to go public

Marathon Digital Holdings is another business that focuses on Bitcoin mining as well as buying BTC using its treasury holdings (MARA).

1628551326_647_MicroStrategy-and-Bitcoin-mining-stocks-rally-as-BTC-price-rebounds4-hour chart of MARA/USD. TradingView is the source of this information.

According to TradingView data, MARA has surged 83 percent from a low of $20.52 on July 20 to an intraday high of $37.77 on August 6, making it the best-performing Bitcoin mining stock over the last two weeks.

The author’s thoughts and opinions are entirely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.

Bitcoin miners like Bitmain and Canaan are up big today, despite the fact that their stocks have yet to rebound to their highs. At the time of this writing, both stocks are still down about 50% from their peaks. However, today’s rally has sent them close to those highs. Given the volatility of Bitcoin’s price, today’s rally may be just a blip. But it is certainly a great reminder that the stock market is always a buyer’s market.. Read more about microstrategy stock crash and let us know what you think.

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