TL; DR
-
Four BTC-related stocks ($COIN, $MARA, $CLSK, $MSTR) rose by a greater percentage than BTC in February, all with fewer investments because they have a lower total value.
Full story
Okay, take this:
In February, Bitcoin’s value rose ~45%, but there were a handful of stocks that outperformed Bitcoin… and every one of those stocks was related to Bitcoin…
How does that work?? Something like this:
-
Coinbase ($COIN +56%)
In Q4 ’23, Coinbase reported positive net income (for the first time in a long time).
But what kept the stock price moving was the adoption of the Bitcoin ETFs. Coinbase partners with 8/11 of them and buys BTC on their behalf.
The assumption is that BTC ETF transaction fee revenues will help exceed expectations in the first quarter of 2024.
-
Marathon Digital ($MARA +75%) and CleanSpark ($CLSK +125%)
These two are both publicly traded Bitcoin mining stocks that have spoken out halve in advance schedule.
CleanSpark has purchased three more mining facilities in preparation. These types of stocks are very popular among traders looking to diversify their exposure to crypto, so we’re not surprised.
-
MicroStrategy ($MSTR +92%)
ICYMI: MicroStrategy is a software company that happens to own over $10 billion in Bitcoin. Why? Because their founder/former CEO is obsessed with it.
“Okay, but why/how did they outperform Bitcoin?”
Bitcoin has matured (it’s a $1.2 trillion asset), which means it will take a whole lot more investor dollars for the price to rise.
A +10% increase in the price of BTC right now would add ~$120 billion in value.
(That’s larger than the market caps of Solana, Ripple, and Cardano combined!).
Long story longer: these Bitcoin-related stocks can rise by a greater percentage with less investment because they have a lower total value.
Now you know it!