Bitcoin Breaches $50k, Triggers Stock Surge for MicroStrategy & Miners

In an exciting turn of events, Bitcoin surged past $50,000 on February 12, creating waves not only in the crypto world but also impacting the stock market. This surge is not only good news for Bitcoin; it’s also triggering significant gains in related stocks, particularly for MicroStrategy and Bitcoin mining companies.

Read more about the developments below.

MicroStrategy’s Winning Streak

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

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

Adding to its Bitcoin holdings, MicroStrategy recently acquired 850 BTC for $37.2 million in January.

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

Mining Stocks on the Upswing

The positive momentum from 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.

The MVIS Global Digital Assets Mining Index showcased a remarkable 108% surge in 2024.

Mining Profits Soar Despite Challenges

Bitcoin’s price surge 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, reflecting the positive outlook for miners due to the rising value of Bitcoin.

Read More: Bitcoin Price Hits $50K After Almost Two Years, Will It Be Short-Lived or Rally To $55K?

Optimism is still high!

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