In 2023, the stock market proved to be a highly profitable arena for crypto enthusiasts. While bitcoin experienced a commendable 150% rally over the year, several stocks closely tied to digital currency fared even better, with Coinbase, MicroStrategy, and the Grayscale Bitcoin Trust all witnessing a remarkable rise of over 300% in value. Additionally, Marathon Digital, a bitcoin miner, experienced an astounding surge of 688%. These stocks not only outperformed the primary cryptocurrency but also emerged as some of the top gainers in the entire U.S. market. FactSet data reveals that among publicly traded U.S. businesses with a market value of at least $5 billion, the four stocks linked to bitcoin ranked among the top eight performers.
This crypto boom signifies a significant rebound from the challenging year of 2022, which saw a sharp decline in coin prices and subsequent negative impact on related equities. In 2022, the landscape was marred by hedge fund collapses, failures of crypto lenders, and substantial losses among miners. The troubles came to a head in November 2022 when FTX, a prominent crypto exchange, spiraled into bankruptcy, resulting in the arrest of its founder, Sam Bankman-Fried, on fraud charges.
Source (CNBC)
