Cryptocurrency-linked stocks rose Wednesday as Bitcoin headed for its biggest monthly gain since 2019, extending a rally that’s seen some companies’ shares more than quintuple since the end of October.
Marathon Patent Group Inc., which has soared 444 per cent over the past two months, added another 4.4 per cent Wednesday. Riot Blockchain Inc. rose as much as 7.1 per cent Wednesday after gaining 383 per cent since Oct. 30. And Bit Digital Inc., which surged 81 per cent on Monday alone, jumped another 31 per cent.
Canadian-listed Hive Blockchain Technologies gained as much as 6 per cent early Wednesday, with shares nearly doubling since the start of December. Also, Mike Novogratz’s Galaxy Digital Holdings rose another 3.4 per cent, pushing the shares more than 60 per cent higher since the start of the month.
The price of Bitcoin briefly rose above US$28,000 Wednesday to a record high, bringing its December gain to more than 40 per cent. Other cryptocurrencies have also surged, with the Bloomberg Galaxy Crypto Index up 270 per cent in 2020.
Some investors see Bitcoin as a gold-like hedge against inflation and U.S. dollar weakness, while others see it as too speculative to provide a safe haven.
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