Crypto stocks on the up ever since Fed rate cut last week

Last week’s Federal Reserve interest rate cut, coupled with the knowledge that the Bank of Japan will not raise rates in the near future, is good news for Bitcoin, but also for crypto-related stocks. Marathon Digital, Cleanspark, Riot Platforms, Coinbase and Microstrategy have all had quite different 2024s. Will they all go higher from now until the end of the year?

Ups and downs

So far, 2024 has been a story of major ups and downs for crypto-related stocks. Crypto mining companies like Marathon Digital, Cleanspark and Riot Platforms have actually had a pretty bad year as investors wonder how their business models will adapt to the halving.

All crypto mining companies had to make large investments in better and faster equipment as the reward they receive for solving a crypto calculation is fewer Bitcoins than before in this post-halving period. The good news is that the price of Bitcoin has been above $50,000 for several months. Hopefully for them it stays that way.

Coinbase is doing slightly better, especially in the first half of the year, when the Bitcoin ETFs were launched and it announced a direct partnership with BlackRock. The Coinbase share which was launched with much fanfare on the US exchanges back in 2021 has never since achieved the value of that opening day. However some fans thought that it was finally on its way again during the first six months of this year. This summer was more difficult, as Bitcoin moved mostly sideways. Ever since the Fed’s announcement this week, things are improving again. Could be a very nice end to the year for Coinbase’s stock.

$COIN
Stocks at ATH, BTC is a 16% move away from ATH yet Coinbase stock is nowhere near its high.

This is undervalued. pic.twitter.com/1CfjKJ3v30

— Jeremy WindMillsz (@WindMillsz_2) September 19, 2024

Microstrategy

Finally, there is of course Microstrategy, whose stock is already up more than 100% since the beginning of the year.

MicroStrategy has acquired 7,420 BTC for ~$458.2 million at ~$61,750 per #bitcoin and has achieved BTC Yield of 5.1% QTD and 17.8% YTD. As of 9/19/2024, we hodl 252,220 $BTC acquired for ~$9.9 billion at ~$39,266 per bitcoin. $MSTR https://t.co/JUtgztpzBu

— Michael Saylor⚡️ (@saylor) September 20, 2024

Michael Saylor’s fintech investment company has by now become one of the largest Bitcoin whales on earth. Saylor has them purchasing Bitcoin whenever possible.

Because of this, most of the company’s quarterly reports and profits depend on the price of Bitcoin, and if the largest digital currency were to hit a new all-time high before year-end, Microstrategy’s stock price likely will too.