Bitcoin is currently on a bull run that has seen it pack on over 65% in the last four months. Such gains mean the digital asset has more than tripled in value this year; recently, it surged past $13,000 on Wednesday, June 26. Currently, the world’s largest digital asset by market cap is selling for $11,888. Now, Bitcoin-related stocks, with exposure to the cryptocurrency industry, are responding in kind; several businesses are soaring in tandem with Bitcoin’s success.
Let’s check out three small-cap businesses that are showing strong potential for investors at this time.
Bitcoin-Related Stocks: RIOT Blockchain Inc. (NASDAQ:RIOT)
Shares of RIOT Blockchain skyrocketed 48% this week, hitting a high of $3.90 per share in Wednesday’s trade. The small-cap blockchain provider corrected some of those gains come Thursday, but the stock has still surged roughly a quarter in the past month.
RIOT is directly linked to the cryptocurrency industry and has followed Bitcoin’s trading pattern closely. It operates over 8,000 cryptocurrency mining machines in Oklahoma City and has announced plans to launch its own US digital currency exchange called RiotX.
Akin to this, it has investments in Canada’s crypto exchange Coinsquare, blockchain server Tesspay, and a cryptocurrency accounting and audit technology specialist called Verady.
Earlier this year, RIOT enjoyed massive success in its mining revenues. It mined approximately 330 Bitcoins, 356 Bitcoin Cash, and 1,423 Litecoins, and this drove mining revenues up 56% to about $1.4 million.
This company still suffers from massive operational costs, however; $4.5 million to be more precise.
Firmly routing itself within the cryptocurrency sphere means investors must be diligently aware that RIOT Blockchain will likely be a volatile play. With a market cap of $48.99 million, and shares currently selling for $3.07 USD, however, should Bitcoin continue to surge, it’s likely that RIOT will too.
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Overstock.com (NASDAQ:OSTK)
Another Bitcoin-related stock responding to the coin’s climb is internet retailer Overstock.com. The company has surged 40% in the past month mainly in thanks to its significant blockchain ventures.
One of these is a subsidiary called tZERO that launched a digital wallet and exchange-services mobile app only this week. Coinciding with Bitcoin’s success, the release allows users to buy, sell, and store Bitcoin and Ethereum on their smartphones.
The company was ahead of its time, being one of the first major retailers to accept cryptocurrency. It began this in 2014 and has continued to be a strong advocate for the digital asset since. Even CEO Patrick Byrne stated that he “invests personally in blockchain projects” using his own salary to do so.
On Wednesday this week, Overstock.com jumped roughly 30% (the same day that Bitcoin breached $13,000 per coin). Now, at $13.02 per share on the NASDAQ exchange, OSTK stock ends this week up approximately 20% overall.
Overstock.com has a market cap of $459.29 million at present.
MGT Capital Investments (OTCQB:MGTI)
Bitcoin-related stocks don’t come more dependant on Bitcoin than MGT Capital Investments. As one of the US’s largest Bitcoin miners, with over 5,700 mining machines in operations, MGT is sticking to Bitcoin price like glue.
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It doesn’t take a genius to understand that, as a mining company, MGT’s success is largely defined by Bitcoin’s. So with Bitcoin surging, MGT has surged too. This week saw the company climb 60%. However, as Bitcoin corrected on Thursday after hitting a high of $13,800, so did MGTI stock.
This reliance on Bitcoin has weighed heavily on the company. Last quarter, MGT shut down a large percentage of its machines because the low Bitcoin price meant they weren’t economically viable to run. A direct result, then, was that revenue plunged to as little as $28,000 USD. However, with most of its machines turned off, operational expenses halved and operating losses came in at about $2 million.
But now that Bitcoin is rallying, MGT has ramped up mining production once again and is taking advantage of the “good times.” How long it will last, of course, remains the age-old question.
Selling for a tiny price tag of $0.068 USD on the OTC, MGTI is a highly speculative stock that depends entirely on Bitcoin’s success. But for those Bitcoin bulls out there, it could be worth the risk, because if the digital asset continues to surge, it is likely that MGTI stock will too.
MGT Capital Investments has a small market cap of 14.87 million at the time of writing.
The Takeaway
So there you have three small-cap Bitcoin-related stocks that are reaping the benefits of Bitcoin’s surging price. The importance of Bitcoin’s performance on their business can be seen as a positive or a negative, of course, but either way, right now, the coin looks to be caught in a serious upward trend. So take from that what you will!
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