The stocks of public Bitcoin mining companies have increased sharply recently after the benchmark crypto exceeded $20,000 yesterday, according to CoinDesk.
Riot Blockchain (RIOT), Marathon Patent Group (MARA) and Hive Blockchain (HIVE), three major companies focused on Bitcoin mining, are enjoying double-digit percentage increases, resulting in the value of each company exceeding $450M.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
Ethan Vera, co-founder of mining company Luxor Technologies, said recently:
"Mining stocks are a very attractive way for investors to get upside exposure to [the] bitcoin price while being limited on the downside due to the infrastructure nature of the business."
The largest crypto in the market has risen 185% so far this year.
It is no surprise that cryptocurrency mining companies are positively influenced by the increased in the price of BTC, as their business depends entirely on the crypto. Thus, when the price of the cryptocurrency falls, the interest in mining cryptocurrencies also decreases, forcing mining companies to cut down the prices of their devices. On the other hand, when the BTC price soars, mining companies also enjoy the positive effects of the increase, as a higher price means more people are interested in joining the business, allowing companies to rise the prices of their devices.