Cryptocurrency-related publicly traded companies have achieved triple-digit percentage gains this year and closed in the green on December 4th, similar to Bitcoin’s price reaching its highest point this year, surpassing $42,000.
Coinbase’s cryptocurrency exchange, represented by the stock ticker COIN, closed the trading day at over $141, marking a 5.5% increase and a 320% gain from the beginning of the year, according to Google Finance data.
Bitcoin mining companies Marathon Digital (MARA) and Riot Blockchain (RIOT) both ended the day with more than an 8% increase, recording respective year-to-date gains of 337% and 345%.
Cryptocurrency investment firm Galaxy Digital Holdings (GLXY) announced a daily gain of nearly 12%, translating to a 155% increase since the beginning of the year. MicroStrategy (MSTR), which holds the largest amount of Bitcoin of any publicly traded company worth over $6.6 billion, saw a daily gain of 6.5% and a year-to-date increase of 288%.
This performance stands out despite the broader North American stock market experiencing fluctuations on December 4th, with many groups seeing both gains and losses. Large-cap technology stocks, such as Microsoft, dropped 1.43% during the day, while Apple declined by 0.95%, Google by 2.02%, and chip manufacturer Nvidia by 2.68%.
However, cryptocurrency-related stocks are currently trading near all-time highs.
Market analyst Tony Sycamore of IG Australia noted that the surge in cryptocurrency-related stock prices “stems from the spectacular rise of Bitcoin in recent months,” with Bitcoin increasing nearly 152% since the beginning of the year and closing at $42,000 – its highest level in 19 months.
Sycamore mentioned that investors consider cryptocurrency stocks as a way to gain exposure to cryptocurrencies until the United States approves Bitcoin spot ETFs.
He added, “As Bitcoin’s price rises, it will fuel excitement and increase trading volume as well as participation in the growing cryptocurrency ecosystem.”
Sycamore stated that Bitcoin is supported “by a series of favorable tailwinds not seen since 2021” and emphasized the optimism surrounding the approval of spot ETFs, the possibility of the US Federal Reserve cutting interest rates next year, and the upcoming Bitcoin halving scheduled for April.