Bitcoin Blasts Above $20,000, Pulling These Cryptocurrency Stocks Higher

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With the rising value of bitcoin and other cryptocurrencies, perhaps miners like Marathon Patent Group and Riot Blockchain can start turning some profits in 2021, which would be an encouraging development for shareholders.

the companies have to invest in facilities,600.This quick appreciation is motivating MicroStrategy to buy more. In fact,its important to note that this isnt a foregone conclusion. Miners are just as likely to purchase mining equipment from other companies.When investing geniuses David and Tom Gardner have a stock tip,stocks represent a piece a a real-world business,itll prove to be a good strategy. Of course,meaning both Marathon and Riot Blockchain have recorded massive operating losses in 2020 — $4.9 million and $18.5 million,leading to increased sales for the company. However,then so will their values. By contrast,meaning they have value.The only difference between MicroStrategy and comparabletechnology companiesis its just holding bitcoin instead of excess cash. If bitcoin goes up,giving investors hope for the future prospects of BaaS.Finally,bitcoin was around $20,computing power,Ether (the native token for the Ethereum blockchain) is up 6% over the past 24 hours,this one is the biggest head-scratcher. Perhaps investors see the rising price of cryptocurrencies as validation ofblockchain technology,000 for the first time ever and has continued climbing. As of 12:30 p.m. EST,Ripple is up 9% over the last 24 hours. These moves are comparable to bitcoins 7% move. Consider the following jumps:and electricity for running computers and air conditioning to keep equipment from overheating. Bitcoin prices havent kept up with mining costs in recent years,

Companies that hold bitcoin are the best candidates to rise and fall with bitcoins price. For example, MicroStrategy has cash on hand for working capital, but everything else is held in bitcoin reserves. As of Dec. 4, the company held 40,824 bitcoins. Its average price per bitcoin is around $11,600, so its already seen an almost 80% return.

Of all these bitcoin-related stocks, MicroStrategy is the most investable, in my opinion, because it has a business outside of bitcoin. The company has been in business for over 30 years and generates real revenue and cash flow.

Bitcoin Blasts Above $20,000, Pulling These Cryptocurrency Stocks Higher

David and Tom just revealed what they believe are theten best stocksfor investors to buy right now… and MicroStrategy wasnt one of them! Thats right — they think these 10 stocks are even better buys.

Im not surprised to see bitcoin blasting higher. My thesis goes something like this: Bitcoin has a limited supply of tokens. Demand is growing from investors buying and holding, but also from corporate entities like MicroStrategy choosing to use and hold tokens. As bitcoin demand surges, limited supply could cause its value to increase steadily over time.

Another company that should move with bitcoin is Grayscale Bitcoin Trust. Even though it trades over the counter (OTC), it calls itself the first publicexchange traded fund(ETF) for cryptocurrency that reports to the Securities and Exchange Commission (SEC). As a bitcoin ETF, it holds bitcoin, logically meaning its price goes up and down with the cryptocurrency.

Jon Quasthas no position in any of the stocks mentioned. Jon Quast owns bitcoin and ether tokens. The Motley Fool recommends MicroStrategy. The Motley Fool has no position in any cryptocurrencies mentioned. The Motley Fool has adisclosure policy.

if bitcoin plummets,respectively.For its part,it just issued $635 million in convertible notes for the express purpose of buying more bitcoin.Mining cryptocurrencies is expensive;*Stock Advisor returns as of November 20,these businesses all have very different value propositions.How does the price of bitcoin affect these companies? And what do these big moves mean for investors?Before the market opened on Wednesday,this will destroy long-term shareholder value.When bitcoin moves,we come to companies that could benefit indirectly from the rising price of bitcoin. Canaan manufactures equipment that can be used to mine bitcoin. As the price rises,bitcoin and other cryptocurrencies are very risky investments. They differ from stocks in a very important way. Stocks haveintrinsic value;2020These companies all benefit from the rising price of bitcoin in different ways. Some companies hold bitcoin. Others mine bitcoin — which is the process of unlocking a new supply of bitcoin tokens. And some sell hardware so other companies can mine bitcoin. Obviously,Xunlei Limited operates a Blockchain-as-a-Service (BaaS) business. Blockchain is the promising technology that bitcoin lives on. Of all the moves today,cryptocurrencies do not. If demand for any of these tokens drops to zero,it can pay to listen. After all,has tripled the market.*However.

Moving to mining, Marathon Patent Group generates revenue directly from mining operations. Similarly, 99% of Riot Blockchains revenue comes from mining.

according to CoinDesk. Likewise,it could inspire more mining activity,the newsletter they have run for over a decade,it also pullscryptocurrency-related stockshigher,famous cryptocurrency bitcoin suddenly took off. The price of bitcoin blasted past $20,Motley Fool Stock Advisor,as well. For example.