Bitcoin Hits Record High. Here's Why Crypto Stocks Diverge
Bitcoin surpasses silver to rank as the eighth most valuable property globally as it advances in the rankings of the most valuable assets by market capitalization.
Earlier on Monday, Bitcoin's valuation surged to $1.42T, surpassing that of sliver at $1.387T, with a 4% increase to an all-time high beyond $72,000 and has now notched six straight days of gains, according to CompaniesMarketCap.
A record $2.7 billion flowed into crypto assets last week, according to a Monday report from the digital asset manager and crypto research firm. The bulk of the flows went toward Bitcoin.
Since the start of this year, about $10.3 billion has flowed into crypto assets, close to the $10.6 billion of inflows recorded by the market over the entire course of 2021, according to the report by CoinShares' head of research, James Butterfill. That was also the year Bitcoin hit its last all-time high near $69,000.
Prices for bitcoin and other cryptocurrencies were surging Monday. However, shares of cryptocurrency-linked companies were down beyond MicroStrategy. $Coinbase(COIN.US$ was down roughly 1%. Crypto-mining stocks $Marathon Digital(MARA.US$ dropped 12.1%, and $Riot Platforms(RIOT.US$ fell 4.6%, respectively. $MicroStrategy(MSTR.US$ stock was up 4%.
Bitcoin Miners Face Challenges As Halving Nears
The Bitcoin halving is expected to happen in April, which has a significant impact on miners. When a Bitcoin halving happens, the number of new coins created gets cut by 50%, and the rewards for miners are cut in half. It means a reduction in miners' income, as they receive fewer Bitcoins for each block they mine.
Halving Bitcoin could also make mining more difficult. According to analyst Daniel Gray, miners must continually strive to increase their efficiency, secure lower-cost energy from more economical sources, and expand their infrastructure to accommodate new machines. However, given the competitive landscape, every miner vies for the same resources.
Big Crypto Player's Bitcoin Bet is Paying Off As Stock Soars
MicroStrategy's bet on Bitcoin is paying off handsomely as the big crypto player's stock soared 4% on Monday. MicroStrategy announced that it had completed an offering of senior convertible notes and used net proceeds of about $782 million to buy more Bitcoins.
MicroStrategy is essentially a proxy for direct BTC investment without a spot Bitcoin exchange-traded fund (ETF) in the United States. It holds 205000 BTC so far, the most by a publicly traded company as a part of its treasury strategy.
MicroStrategy's stock was up roughly 135% year-to-date. It mirrored Bitcoin's 70% YTD gains, maintaining a strong positive correlation with the top cryptocurrency.
Here are the top 12 companies with largest Bitcoin holdings below:
Source: Barron's, Marketwatch, Bloomberg, CoinShares
By Moomoo News Yolanda
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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