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Bitcoin Mining Stocks Are Decoupling From the Price of Bitcoin. Here's What Investors Need to Know.
Bitcoin's rising price lifted the stocks of many companies invested in the cryptocurrency's future. Strategy (NASDAQ: MSTR), which transformed from a slow-growth enterprise software company into a Bitcoin hoarder, saw its stock surge nearly 1,000% during the past three years.
Crypto miner Cipher Mining (CIFR) soared nearly 20% in pre-market on Monday after announcing a $5.5 billion, 15-year deal with Amazon Web Services (AWS) to supply power and space for artificial intelligence (AI) workloads. The agreement marks one of the largest partnerships yet between a crypto mining firm and a major cloud provider.
American Bitcoin, the Bitcoin treasury and mining company backed by Eric Trump and Donald Trump Jr., has added 1,414 Bitcoin to its holdings.
Missing earnings usually means falling stock prices, right? Not when you announce a massive Amazon deal on the same day.
Again in a nod to Saylor and team. Strive said it plans to maintain SATA’s trading range between $95 and $105 per share by adjusting dividend rates within set limits. If dividends go unpaid, the rate compounds monthly, eventually reaching up to 20% annually, per the press release.
Separately, while Strategy Inc. (NASDAQ:MSTR) is sometimes seen as a proxy for bitcoin, YTD performance has diverged, with the stock down around 2% and bitcoin up nearly 19%. Investors should also note that Strategy carries high volatility with an equity beta of 3.8.
Tilray Brands recently bought some Bitcoin, and is considering investing even more into crypto. The company's position is still fairly small in relation to other big crypto holders. Tilray continues to burn through cash, which could make it difficult for it to balance crypto purchases alongside its growth strategy.
Bitcoin currently trades about 10% above that $100,000 threshold. If the stock market breaks down over the next year, it seems likely that Bitcoin would tumble enough to drag its price back to a five-figure level. So, while Bitcoin has a bright future, it wouldn't surprise me at all to see it trading below $100,000 a year from now.
Hyperscale Data's Bitcoin treasury reached $68.8M with 194.55 BTC holdings. Company plans weekly purchases toward $100M target using dollar-cost averaging.
MSTR stock price has crashed this year and is now hovering at its lowest level since April. Here's why Strategy may crash soon.
Strategy (MSTR) acquired 397 bitcoin at an average price of $114,771 last week, increasing its holdings to 641,205 tokens. The company mostly funded the purchase with sales of common stock. MSTR is lower by 1.7% in premarket trading alongside a weekend slide in the price of bitcoin to below $108,000.