TL;DR
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Four BTC related stocks ($COIN, $MARA, $CLSK, $MSTR) moved up by a greater % than BTC in Feb, all with less investment, because they have lower total values.
Full Story
Alright, get this:
In February, the value of Bitcoin increased by ~45%, but there were a handful of stocks that outperformed Bitcoin…and each of those stocks were Bitcoin related…
How does that work?? Something like this:
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Coinbase ($COIN +56%)
In Q4 of ‘23, Coinbase reported a positive net income (for the first time in a long time).
But what kept the stock moving up was the approval of the Bitcoin ETFs. Coinbase has partnered with 8/11 of them, buying BTC on their behalf.
The assumption being that in Q1 of 2024, income from BTC ETF transaction fees will help outpace expectations.
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Marathon Digital ($MARA +75%) and CleanSpark ($CLSK +125%)
These two are both publicly traded Bitcoin mining stocks that have been vocal about their pre-halving planning.
CleanSpark, specifically, has bought three more mining facilities in preparation. These types of stocks have been very popular for traders looking to diversify their exposure to crypto, so we aren’t surprised.
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MicroStrategy ($MSTR +92%)
ICYMI: MicroStrategy is a software company that just so happens to own over $10B in Bitcoin. Why? Cause their founder/former-CEO is obsessed with it.
“Ok, but why/how did they outperform Bitcoin?”
Bitcoin’s all grown up (it’s a $1.2T asset), which means it takes a whooole lot more investor dollars to move its price.
A +10% move in BTC’s price right now would add ~$120B worth of value to it.
(That’s greater than the market caps of Solana, Ripple, and Cardano combined!).
Long story longer: these Bitcoin related stocks can move up by a greater percentage with less investment, because they have a lower total value.
Now you know!
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