Bitcoin Miners and MicroStrategy Surge: Key Drivers Behind Recent Gains

2 min read | September 12, 2024 05:16 PM PDT | By Team Kalkine Media

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Bitcoin Miners and MicroStrategy Surge: Key Drivers Behind Recent Gains — Image source: Shutterstock

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Headlines

- Bitcoin-related stocks, including Riot Platforms, MARA Holdings, and MicroStrategy, experienced significant increases this week.

- Positive market reactions to Bitcoin’s resilience amid economic and political developments contributed to these gains.

- The broader economic outlook, including potential interest rate cuts by the Federal Reserve, suggests favorable conditions for Bitcoin and related companies.

Shares of Bitcoin miners Riot Platforms (NASDAQ:RIOT) and MARA Holdings (NASDAQ:MARA) saw notable increases this week, with shares rising approximately 10% and 17%, respectively, by Thursday morning. Meanwhile, MicroStrategy (NASDAQ:MSTR), a key player in Bitcoin holdings and business intelligence, saw its shares climb roughly 15% during the same period.

What’s Driving the Surge?

The price of Bitcoin, closely tied to these stocks, managed to maintain its momentum despite recent economic and political uncertainties affecting the largest cryptocurrency. The Consumer Price Index, which aligned with expectations on Wednesday, and a strengthening dollar, typically influence Bitcoin and related stocks negatively. Additionally, a high-profile debate between Vice President Kamala Harris and former President Donald Trump was held this week, with betting odds favoring Harris. The general sentiment suggests that a Harris administration might impose stricter regulations on crypto compared to Trump’s approach.

However, recent analysis from Standard Chartered offers a more optimistic perspective. The research suggests that Bitcoin could continue to thrive regardless of the election outcome. Although a Harris victory might initially impact Bitcoin’s price, anticipated regulatory progress and other positive market drivers are expected to counterbalance this. Analysts predict Bitcoin could reach $125,000 by year-end if Trump wins and $75,000 if Harris prevails.

In company-specific developments, Barclays recently began coverage of MicroStrategy, highlighting its strong position. The analysis notes that MicroStrategy offers exposure to Bitcoin while also showcasing its capability to generate investment capital through its software business. The firm views MicroStrategy as a Bitcoin index fund with added benefits from its self-funded growth potential.

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