As Bitcoin Suddenly Surges Over $50,000, The Price Of These Cryptocurrency Stocks Is Soaring – Forbes

Bitcoin’s latest bull run has seen its price climb by almost 500% over the last year, charging back above $50,000 per bitcoin after a sell-off last week.

In February, the value of the 18.6 million bitcoin tokens in circulation passed $1 trillion for the first time—helping the wider cryptocurrency market climb to near $2 trillion.

As soaring bitcoin and cryptocurrency prices tempt users to the burgeoning market, share prices of many crypto businesses have risen too, with some far outpacing recent cryptocurrency rallies.

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Over the last three months, the bitcoin price has climbed 150%, while some other major cryptocurrencies have recorded even bigger gains.

However, the share price of KR1—a London-listed digital asset investment company that was an early investor in soaring ethereum rival polkadot—has added a blistering 800% since early December.

“KR1 was set up to allow investors access to the crypto economy via a publically-listed company,” says George McDonaugh, KR1 managing director, speaking over the phone. KR1 listed shares on the U.K.’s Aquis exchange in 2016 and has seen its stock price rise 33,000% since then.

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“Cryptocurrency stocks are outperforming the underlying assets because of the infrastructure that allows people to invest in public stock, such as 401(k)s and ISAs,” says McDonaugh. “If you can tax-wrapper something as explosive as crypto, that makes a lot of sense in a lot of investor’s eyes.”

According to McDonaugh, investors “are pricing in future management decisions, which makes KR1 slightly different from bitcoin mining stocks and the likes of Coinbase”—the San Francisco-based bitcoin and cryptocurrency exchange that’s set become a publicly traded company worth around $100 billion through a direct listing (meaning it won’t seek to raise additional funds).

Some bitcoin and cryptocurrency miner stocks have also soared in recent months. Las Vegas-based Marathon Digital Holdings, formerly Marathon Patent Group, is up 500% since early December, while Colorado-based Riot Blockchain is up 400%.

The share price of Shanghai-based The9, which develops and operates online and mobile games as well as blockchain services and bitcoin mining, has soared more than 1500% over the last three months, rocketing along with the surging bitcoin price.

While cryptocurrency company share prices are climbing amid bitcoin’s latest bull run, company executives are well aware a crypto bear market similar to 2018’s could see stock prices plummet.

“There could be every possible shade of despair if digital assets fall by 90% again,” as they did through 2018, says McDonaugh, though he’s quick to point out a silver lining.

“It will mean we can start allocating capital again. Right now we’re riding the success of projects we bet on during the 2018-19 bear market. We need to make sure we’re best positioned to take advantage of the tailwinds and we’re able to work harder if we enter a slow down.”

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