MicroStrategy and Bitcoin mining stocks rebound as BTC price rebounds


Bitcoin’s price (BTC) rose to a 3-month high of $ 46,293 after the bulls confirmed they intended to take full control of the market. While crypto traders could be back in the green and pro traders may want to add larger leveraged positions, not every investor class has direct exposure to Bitcoin.

For institutional investors, a fund administrator sets the rules for what percentage of the portfolio is invested in different asset classes and different companies have different risk appetites. Reasons investors might amass these assets rather than simply holding BTC are the above-mentioned restrictions and regulatory uncertainty surrounding buying Bitcoin directly.

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Because of this, a number of companies are prohibited from investing directly in Bitcoin and other cryptocurrencies, but there are other ways to get involved in the crypto sector.

Companies that specialize in Bitcoin mining have also made immense profits, and a handful are publicly traded and can be a compensation game for investors looking for some exposure to BTC in their stock portfolios.

The recent crackdown by miners in China has resulted in a more dispersed mining network and has sparked several rounds of fundraising and expansion for publicly traded Bitcoin mining companies that could potentially benefit from the reshaping of Bitcoin’s global mining network, which is likely still Will last for years. Here are some publicly traded companies that offer investors exposure to Bitcoin.

MicroStrategy’s bet on Bitcoin provides a boost

Software company MicroStrategy (MSTR) and its CEO Michael Saylor have become known across the cryptocurrency sector for their wild support for Bitcoin as a store of value and the massive amount of BTC the company bought last year.

In addition to helping educate the world about the promise of Bitcoin and blockchain technology, MicroStrategy has built a Bitcoin portfolio of more than 105,000 BTC in its treasury to hedge against inflation.

As a result, MicroStrategy’s share price correlates in some ways with the price performance of BTC and has been observed to move in parallel with the top cryptocurrency.

MSTR / USD 1-day chart. Source: TradingView

As can be seen in the graph above, the price of MSTR hit a low of $ 474 on July 20, the same day as Bitcoin’s low, and has since risen 65% to stand at $ 781.

Bitcoin mining stocks soar

Listed companies that specialize in Bitcoin and cryptocurrency mining have also benefited from the price growth at BTC.

Perhaps the most famous Bitcoin mining company is Riot Blockchain, a company that runs warehouses full of ASIC miners to process transactions on the network in exchange for BTC rewards.

RIOT / USD 4 hour chart. Source: TradingView

Since hitting a low of $ 23.86 on July 20, the price of RIOT has risen 66% to hit an intraday high of $ 39.94 on August 9.

Related: The COIN price doesn’t impress as more and more crypto firms are eager to go public

Another company that is focused on both mining Bitcoin and buying BTC with its treasury holdings is Marathon Digital Holdings (MARA).

MARA / USD 4 hour chart. Source: TradingView

Data from TradingView shows that after hitting a low of $ 20.52 on July 20, the price of MARA rose 83% to an intraday high of $ 37.77 on August 6, translating MARA into Has made Bitcoin mining stock the top performing bitcoin mining stock in the past two weeks.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.