Bitcoin has experienced a staggering increase of more than 10% this week, reaching an all-time high price of $35,900. This surge has had a domino effect on shares linked to the crypto-asset, pushing them to impressive multi-week highs.
One of the most prominent performers is MicroStrategy, the largest publicly traded company with a substantial stake in Bitcoin, which trades on the NASDAQ: MSTR.
In response to the Bitcoin price bomb, MicroStrategy shares are up more than 12%.
The company, which has a significant amount of BTC in its portfolio, is now on the cusp of a remarkable milestone of $1 billion in unrealized gains from its Bitcoin investments.
Coinbase, a major cryptocurrency exchange and a key player in the crypto market, has also reaped the benefits of this surge as its share price has seen a remarkable increase of 7.33%.
This increase reflects the positive sentiment surrounding Bitcoin.
Other companies enjoying a significant rise are crypto mining corporations. Bitcoin mining companies have witnessed substantial gains due to the boost in the price of the asset.
Riot Blockchain (RIOT), a US-listed Bitcoin mining company, saw a 10.34% increase, while Marathon Digital Holdings (MARA) enjoyed a notable 12% increase.
In particular, Bitcoin mining stocks not only outperformed Bitcoin in its daily price increases, but also in terms of year-to-date gains.
Companies such as Cipher Mining Inc., Riot Platforms, Northern Data AG, Hut 8 Mining Corp., Iris Energy, Bitfarms, Marathon Digital and Hive Technologies have posted impressive growth numbers, surpassing the 100% mark this year.
The driving force
Several significant factors have fueled the recent rise in Bitcoin’s price. One of them is the anticipation of the upcoming Bitcoin halving event in April 2024, which will reduce the mining reward from 6.25 BTC to 3.125 BTC per block.
Another key factor is the recent legal ruling in the dispute between Grayscale and the Securities and Exchange Commission (SEC).
On October 23, the US Court of Appeals issued a directive to the SEC, ordering them to reconsider Grayscale’s application for a one-time Bitcoin ETF.
This legal matter stemmed from a dispute brought by Grayscale against the SEC in 2022. It was in response to the SEC’s rejection of the company’s request to convert its Grayscale Bitcoin Trust (GBTC) into a Conventional Bitcoin ETF.
The SEC had consistently cited concerns about market manipulation as the basis for its rejections or delays of one-time Bitcoin ETF applications. These ETFs allow investors to gain exposure to the underlying cryptocurrency without physically owning it.
However, the court’s judges unanimously agreed that the SEC’s decision was unfair and unreasonable, especially in light of the agency’s approval of similar Bitcoin futures ETF products in August 2023.
After that ruling, the US regulator had a 45-day period to challenge the decision, but chose not to take action, allowing the deadline to pass earlier this month.
Accordingly, a court order was issued ordering a re-evaluation of Grayscale’s application, and that re-evaluation has now taken place.
While Bitcoin’s future remains unpredictable, its recent recovery is a testament to its enduring relevance and potential impact on the broader financial landscape.