MicroStrategy and Bitcoin mining stocks rally as BTC price rebounds

The price of Bitcoin (BTC) hit a 3-month high at $ 46,293 after the bulls confirmed they intended to take full control of the market. While crypto traders may be in the green again and professional traders look to add larger leveraged positions, not all categories of investors get direct exposure to Bitcoin.

For institutional investors, a fund administrator sets the rules for what percentage of the portfolio is invested in various asset classes and different companies have varying risk appetites. The reasons why investors can accumulate in these assets instead of just holding BTC include the aforementioned restrictions and the regulatory uncertainty surrounding the direct purchase of Bitcoin.

For this reason, a number of entities are not permitted to invest directly in Bitcoin and other cryptocurrencies, but there are other ways to gain exposure to the crypto industry.

Companies specializing in Bitcoin mining have also generated huge profits and a handful of these are listed and can be a compensation game for investors looking to gain exposure to BTC in their stock portfolios.

The recent crackdown on miners in China has led to a more distributed mining network and sparked several rounds of fundraising and expansion for listed Bitcoin mining companies that could potentially benefit from the overhaul of the global Bitcoin mining network that is expected to be continue for years. Here are some listed companies that give investors exposure to Bitcoin.

MicroStrategy’s bet on Bitcoin gives a boost

Software company MicroStrategy (MSTR) and its CEO Michael Saylor have become well known in the cryptocurrency industry for its wild support of Bitcoin as a store of value and for the massive amount of BTC the company has purchased from it. ‘last year.

In addition to helping educate the world on the promise of Bitcoin and blockchain technology, MicroStrategy has amassed a Bitcoin wallet of over 105,000 BTC in its treasury in order to hedge against inflation.

As a result, MicroStrategy’s share price has become somewhat correlated with the price performance of BTC and has been observed to move in tandem with the major cryptocurrency.

As the chart above shows, 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 trade at $ 781.

Bitcoin mining stocks soar

Listed companies specializing in mining Bitcoin and cryptocurrencies have also benefited from the growth in BTC prices.

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

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

Related: COIN Price Not Impressing As More Crypto Firms Eager To Go Public

Another company that focuses on mining Bitcoin as well as buying BTC with its cash holdings is Marathon Digital Holdings (MARA).

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, making MARA stock. highest performing Bitcoin mining company over the past two weeks.

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