Bitcoin Hits $50.3K Milestone, Triggers Surge in MicroStrategy and Mining Stocks

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Bitcoin’s recent climb to over $50,000 on February 12 is making waves not only in the crypto world but also in the stock market. The surge has not only benefited Bitcoin itself but has also led to significant gains in MicroStrategy (MSTR) and various Bitcoin mining stocks.

MicroStrategy’s Winning Streak with Bitcoin

MicroStrategy, led by Michael Saylor, saw an impressive 11% increase in its stock (MSTR) within just 24 hours, reaching a value of $719. Over the past week, MSTR gained a whopping 33%. 

MicroStrategy’s success story revolves around its strong belief in Bitcoin as a digital asset and store of value. The company currently holds a massive 190,000 BTC in its treasury, valued at $8.1 billion, acting as a strategic hedge against inflation.

In January, @MicroStrategy acquired an additional 850 BTC for $37.2 million and now holds 190,000 BTC. Please join us at 5pm ET as we discuss our Q4 2023 financial results and answer questions about our #bitcoin strategy and business outlook. $MSTR https://t.co/j5SbcELsue

— Michael Saylor (@saylor) February 6, 2024

With a recent addition of 850 BTC purchased for $37.2 million in January, MicroStrategy continues to bolster its Bitcoin holdings. 

Meanwhile, the chart analysis indicates that on February 12, the same day Bitcoin reached its high of $50,363, MSTR also reached an intraday high of $712. The strong correlation coefficient of 0.94 suggests a robust relationship between the price movements of MicroStrategy and Bitcoin.

Bitcoin Mining Stocks Surge

The positive momentum generated by Bitcoin’s surge is flowing into Bitcoin mining stocks, resulting in significant gains. Riot Platforms (RIOT), a key player in Bitcoin mining, experienced an outstanding 55% gain over the past week. 

After hitting a low of $9.64 on January 19, RIOT’s price surged by 70%, reaching an intraday high of $16.35 on February 12.

Marathon Digital Holdings, another heavyweight in Bitcoin mining, posted an impressive 60% gain in the last seven days. Hive Blockchain Technologies (HIVE) also saw a notable 28% increase in its stock price during the same period. 

Meanwhile, the MVIS Global Digital Assets Mining Index even showcased a remarkable 108% surge in 2024.

Miners’ Profitability Amid Challenges

Bitcoin’s price surge has played a crucial role in boosting miners’ profits, even with increased mining difficulty. Bitcoin’s mining difficulty level hit an all-time high of 75.50 trillion hashes on February 12, showcasing the network’s strength.

Despite the challenges posed by increased difficulty levels, miners reaped the rewards of Bitcoin’s price surge. The Luxor Hashprice Index, measuring a miner’s earnings from the power used on the Bitcoin blockchain, recorded a notable 16% increase this week. This uptrend reflects the positive outlook for miners due to the rising value of Bitcoin.

Bitcoin’s climb past $50,000 is not only a significant milestone for the leading cryptocurrency but has also sparked optimism in related stocks.