Bullish on Bitcoin? This Skyrocketing Stock Is a Screaming Buy
Bitcoin (CRYPTO: BTC) mining stocks have seen a huge rally this year, largely on the strength of Bitcoin's market-topping performance in the crypto market. Bitcoin is now up 60% year to date, and Bitcoin mining stocks are up even more. Riot Platforms (NASDAQ: RIOT), for example, is up about 215% for the year.
The big question for investors, of course, is whether this rally has legs. Even after Riot Platforms reported better-than-expected numbers in May, its stock price still fell by 13%. Much of that has to do with Bitcoin's recent inability to break through the $30,000 price level, which has investors concerned that the crypto's sizzling performance to start the year may be coming to an end.
Long story short, Bitcoin mining stocks tend to move up and down with Bitcoin. This makes perfect sense because the core business activity of any Bitcoin miner is, well, mining Bitcoin. The more Bitcoin a company mines, the more money it makes. And the higher the price of Bitcoin goes, the more valuable each Bitcoin it mines becomes. It's not rocket science.
Source Fool.com
