Over the past 12 months, the price of the first cryptocurrency has risen by 900%, and the shares of four public mining companies – by 5000%, reports CNBC with reference to the data of the analytical firm Fundstrat Global Advisors.
We are talking about Marathon Digital Holdings, Riot Blockchain, Hive Blockchain and Hut 8.
The researchers noted that each movement of the bitcoin rate by 1% changes the price of shares of mining companies by 2.5% in the same direction. Accordingly, in the conditions of the bear market, securities “will suffer greatly”, according to Fundstrat.
Vice President of Fundstrat Lior Shimron pointed out the desire of investors to get access to bitcoin. In his opinion, public mining companies have become one of the ways to do this, while the Securities and Exchange Commission refuses to approve an exchange-traded fund (ETF) based on the first cryptocurrency.
As a reminder, at the end of trading on February 16, shares of Bitcoin mining equipment manufacturers and mining companies trading in the United States showed double-digit growth. Some have updated all-time highs.