These Crypto Companies Had a Sudden Windfall Thanks to Bitcoin
Bitcoin experienced a momentous uptrend this year thanks to the rising demand for the digital currency. The fast adoption of the digital currency by mainstream investors was among the main catalysts behind the unprecedented rally which pushed its value from $11,500 levels just six months ago to the current $ 57,480 valuation. With notable figures such as Elon Musk investing in bitcoin, many crypto companies have also received significant attention.
A collective of companies dealing in bitcoin and blockchain rode the ultra-volatile wave, subsequently experiencing some sudden windfall.
Riot Blockchain Inc
Riot Blockchain Inc is among companies that experienced tremendous growth thanks to the 2020 – 2021 bitcoin boom. The firm which undertakes bitcoin mining and supports a range of blockchain technologies has seen its stock rise by over 9,000 percent since last year.
In March 2020, the company’s shares were valued at approximately $0.65. They are now trading at $65.93 at press-time.
Riot Blockchain plans to scale operations and improve its returns by acquiring 22,640 new miners by June 2021.
Canaan Creative is another company that has experienced some good fortune due to bitcoin’s ascent. In the past six months, the company’s share value has increased from $1.86 to an impressive $30.58. This is an over 1,500 percent hike.
In February, the company cited increased demand for its ASIC miners in Central Asia and North America as one of the key drivers behind its sustained profitability.
Grayscale Bitcoin Trust
Grayscale Bitcoin Trust currently has the largest public bitcoin reserves in the world, with over 700,000 coins in its possession. Because of the SEC’s prohibitions against bitcoin exchange-traded fund products (ETFs), the agency has become the go-to BTC wholesaler for major investors in the United States.
This is because it provides direct access to the digital currency. Trades by the firm are typically made via over-the-counter exchanges in order to avoid moving markets.
Besides crypto trading, a significant chunk of the company’s revenues are derived from the interest it charges investors. This ranges from two to three percent depending on the product.
The company’s shares have quadrupled over the past six months to reach $52.96 per share.