Veteran traders’ favorite saying, “Never short a dull market,” has once again been proven true as a modest gain for bitcoin has caused a significant surge in the stock prices of cryptocurrency-related companies, including Coinbase and Marathon Digital.
The recent upturn comes after a number of downgrades and price target cuts for Coinbase earlier in the year.
Most miners had begun the year priced as if they were headed for bankruptcy or restructuring, but bitcoin’s modest advance has had a significant impact on Monday. The formerly named Riot Blockchain, now Riot Platforms, has seen an 18.5% increase in stock value, while Hut 8, Hive Blockchain, and Bit Digital have all seen increases of over 20%. While up just 4.6% on Monday, Argo has quadrupled in value since agreeing to a bailout from Galaxy Digital.
While the moves may seem impressive, all of the above companies have suffered declines of over 80% in the past year. As for bitcoin, it has climbed from the mid-$16,000 range to $17,100 at press time, which is about a 5% increase for the year. Other industry players, including MicroStrategy and the ADRs of Galaxy Digital, have also seen increases of 11% and 10%, respectively.