Not too long ago, Live Bitcoin News reported that as bitcoin surged, so did many stocks that were associated with various digital tokens and mining operations. At the time of writing, it seems like the world’s number one digital currency by market cap has been struggling to move past the $50,000 mark again. It is currently still stuck at $48,000 after several days, and there are quite a few crypto-based stocks that are now suffering because of it.
The Bitcoin Price Affects All
Among the companies seeing heavy falls in their stocks are Marathon Patent Group, Riot Blockchain and Hive Blockchain Technologies. All these firms have seen double-digit falls within the past few days alone. In addition, larger firms – such as MicroStrategy – are not immune to such activity, with the software firm having seen its stock fall by as much as 15 percent in just the past 48 hours.
The company had recently announced that it purchased more shares in bitcoin, meaning MicroStrategy now owns close to $5 billion-worth of the asset. It stands as one of the largest and most prominent institutions to support BTC, but this latest purchase wasn’t enough to get the gears turning further. It’s almost as if people have become too used to the idea of MicroStrategy purchasing bitcoin, or perhaps institutional strength is waning now that several firms have become involved.
Either way, more companies have suffered as bitcoin has struggled with $50,000 resistance, and the currency has fallen by close to 20 percent following its $57,000 high which occurred on February 21, though to be fair, it has still surged by more than 400 percent since early last year.
What’s also interesting is that while the mentioned companies are taking hits at press time, they have decided to continue their expansion plans and are not letting any financial dips get in the way of their goals. Over the past two months, Marathon Patent Group announced that it would be purchasing an additional 4,000 mining machines from Bitmain, arguably the largest and most popular producer and distributor of crypto mining equipment. This is set to double the amount of Antminers the enterprise currently employs.
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Marathon is set to extract a wide array of new coins with this purchase, as its new mining capacity will come in at a whopping 1.4 exahash per second by the end of this month.
Riot Blockchain has taken a similar path. It has recently purchased more than 2,000 new Antminer machines. These items are set to bring its hash rate mining capacity up to 1.06 exahash per second. Hive Blockchain has also doubled the number of bitcoins it can mine and will likely see a heavy increase in revenue by the end of March.
The post With Bitcoin Working to Hit $50K, Crypto Stocks Are Hurting appeared first on Live Bitcoin News.
Source: Live Bitcoin News