Why Bitcoin Stocks Skyrocketed Today

After taking a brief step back earlier this week, popular cryptocurrency Bitcoin has come roaring back to life today.

But with Bitcoin back on the rise, these stocks are skyrocketing today, up 16%, 16%, and 12%, respectively, as of 12:45 p.m.

However, Bitcoin supporters argue that we’ve entered the “fourth wave” of adoption over the past year: demand from corporations.

While MicroStrategy has spent more at over $2.2 billion, the move from Tesla was seen as a bigger deal because it’s a much bigger company.

But transactional utility like what Tesla was offering is another thing that could help drive future demand and, consequently, higher prices long term.

Then, Musk announced on social media this week that Tesla was going back on its plan to accept Bitcoin payments, due to high energy costs of transactions.

Companies like Marathon Digital and Riot Blockchain know all about the energy costs of running the blockchain network.

Among Bitcoin stocks, Marathon Digital and Riot Blockchain are acutely affected by Bitcoin’s volatility because they choose to keep what they mine and currently hold 5,324 Bitcoin and 1,771 Bitcoin, respectively.

Despite pullbacks in 2021, Marathon Digital, Riot Blockchain, and Canaan stocks are outperforming the S&P 500 over the past year, as is Bitcoin.

And that’s good news; when Bitcoin crashed in past years, demand for mining fell and Canaan had a hard time moving inventory.

With the total hash rate of the network increasing, miners have to at least increase their power proportionally to keep getting paid as they were before.

Without question, Riot Blockchain and Marathon Digital can make money mining Bitcoin for now.

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