This week saw an intense interest in cryptocurrency stock investments.
This week could very well go down as one of the most remarkable for cryptocurrency investors in history, without a shadow of a doubt. It's been an absolute goldmine for cryptocurrencies themselves, and companies involved in mining and investing in them have seen a significant surge in their stock prices over the past five trading days. This wasn't just a ride on the coattails; several companies even had their own positive news to share.
According to data from S&P Global Market Intelligence, stocks like Marathon Digital (-3.56%) and Riot Platforms (-6.49%) saw a massive increase. Marathon Digital flew nearly 20% higher, while Riot Platforms experienced a serious investor bull run, leaving its stock valued an impressive 36% higher. MicroStrategy (-8.78%) wasn't far behind, with a 18% rise.
Good news every corner
Starting with the company-specific news, both Marathon and Riot Platforms reported optimistic updates about their operations.
Marathon, in its Monday morning press release, announced its October production figures, boasting that it had its best month for Bitcoin creation since the cryptocurrency's halving in April. In total, the company produced 717 Bitcoin, a 2% increase from September's 705.
On the same day, Riot Platforms published its operational update for the same month. The company reported even more substantial growth in its Bitcoin production, leading to a more substantial increase in its stock price.
October saw Riot Platforms mint 505 Bitcoin, averaging nearly 17 per day. This significantly surpassed September's numbers of 412 and less than 14, respectively. It also outperformed September 2023's figures of 458 Bitcoin and sub-15 per-day average.
MicroStrategy didn't have such game-changing news of its own to share, but benefited from a new analyst take. On Monday, Barclays analyst Ramsey El-Assal significantly increased his price target on the stock, raising it by $50 per share for a new fair value assessment of $275. He maintained his overweight (buy) recommendation on MicroStrategy.
Crypto advocates gracing the White House
These developments would likely have boosted these stocks' prices regardless of the external factors. However, this was also a significant week for cryptocurrencies and related assets due to external events.
The first major event was the unexpected victory of Donald Trump and his Bitcoin-supporting running mate J.D. Vance in the presidential election. Both men have shown their intent to support the crypto industry, and investors have taken notice, leading to a surge in coin and token buying.
The second event was the Federal Reserve's (Fed) second consecutive rate cut, which occurred later in the week and gave cryptocurrencies themselves and associated assets a fresh boost. The 25-basis-point reduction may have been less than the previous 50-basis-point reduction, but it was still cheering news for crypto enthusiasts. Sliding interest rates tend to revive interest in, and demand for, relatively risky asset classes like cryptocurrencies and crypto stocks.
The remarkable surge in cryptocurrency prices and associated stocks this week has led to substantial gains for companies involved in finance and investing. For instance, Marathon Digital and Riot Platforms saw their stocks soar by 20% and 36% respectively, as reported by S&P Global Market Intelligence. Additionally, analyst Ramsey El-Assal from Barclays increased his price target on MicroStrategy's stock, further contributing to its 18% rise.
The positive news for these companies was further amplified by external events such as the unexpected victory of Donald Trump and J.D. Vance, who are known supporters of the crypto industry, and the Federal Reserve's second consecutive rate cut, which can stimulate demand for relatively risky asset classes like cryptocurrencies and crypto stocks.
