Nearing record highs, Bitcoin just hit $102,819 – a peak it hasn’t seen since early February. All thanks to bets on Federal Reserve rate cuts, institutional inflows and easing trade tensions between the U.S. and the U.K. Not only is that great news for cryptocurrencies, but also for companies that are diversifying with cryptocurrencies, such as Block Inc. (SYM: XYZ), Strategy (SYM: MSTR) and Riot Platforms (SYM: RIOT) are benefiting.
Helping, BitMEX co-founder Arthur Hayes says Bitcoin could soar to $150,000 by the end of 2025. In fact, according to Hayes, as quoted by CoinCentral.com, “We’re entering a perfect storm for a Bitcoin rally. The macroeconomic environment is pushing the Fed towards more dovish policies, and that means more dollars entering the system. That’s fuel for Bitcoin.”
In addition, “It’s not just about Bitcoin anymore,” he added. “Once the money printer turns on, everything from ETH to SOL benefits.” Again, that’s a significant catalyst for cryptocurrencies, and companies diversifying with it.
Block (SYM: XYZ)
Over the last few days, XYZ dropped from about $60 to $45 on poor earnings, guidance and an analyst downgrade. However, the stock is starting to pivot higher, helped in part by Bitcoin’s explosive rally to more than $100,000. That’s because Block now owns 8,485 BTC.
So, whenever Bitcoin rallies, XYZ does, too.
After finding strong support at around $45, XYZ is just starting to pivot higher. Last trading at $50.11, we’d like to see it initially refill its bearish gap at around $60.
Strategy (SYM: MSTR)
With a market cap of $113.3 billion, MicroStrategy provides business intelligence, mobile software and cloud-based services. The company just bought another $555.8 million worth of the digital currency. That now brings Strategy’s Bitcoin holdings to 538,200 Bitcoin.
Even better, the stock and Bitcoin could explode significantly higher. That is, if CEO Michael Saylor ‘s $13 million price target in 20 years.
In fact, as he said during his Bitcoin 2024 Keynote Speech:
“At Bitcoin’s current price around $65,000, it’s got a market cap of $1.3 trillion, or just 0.1% of all global wealth. For Bitcoin to get to my base case of $13 million in 2045 would require an annual rate of return of 29%. At that level, Bitcoin would have a market cap of $280 trillion and account for 7% of global wealth.”
Riot Platforms (SYM: RIOT)
Bitcoin mining firm, Riot Platforms is just as attractive, as Bitcoin rallies.
After plunging to a low of about $6.19, RIOT is just starting to pivot higher. From its last traded price of $8.44, we’d like to see it really back to $10.50 initially.
Plus, recent earnings weren’t too shabby. While it did produce a net loss of $296.3 million, revenue of $161.4 million, up 103.5% year over year, beat by $680,000. It also produced 1,540 Bitcoin, as compared to the 1,364 produced a year earlier.
“We achieved a new record for quarterly revenue this quarter, at $161.4 million, driven by the significant work our teams have put in during the preceding years, including the multi-year development of the first phase of our Corsicana Facility, significantly expanding our hash rate, and further enhancing our operating efficiency,” said company CEO Jason Les.
