Crypto markets experienced a significant boost on Thursday, with several crypto-related stocks showing double-digit gains in response to a notable increase in Bitcoin’s price, which reached its highest level since mid-August. Among the standout performers were Galaxy Digital (GLXY), Circle Internet (CRCL), and Bitfarms (BITF).
Galaxy Digital, a prominent digital asset investment firm and data center operator led by Mike Novogratz, saw its stock increase by 12%. This uptick coincided with the company’s role as a lead investor in Forward Industries’ recent $1.65 billion fundraising round aimed at creating a treasury vehicle centered around Solana. Analysts indicated that Galaxy may also be benefiting from a growing interest in data center investments, particularly given the rise of AI technologies and the lucrative hosting contracts being awarded by major tech firms. For instance, Microsoft recently announced a significant deal with Nebius, further highlighting this trend.
Further contributing to the bullish sentiment, Bitfarms experienced an impressive 18% increase, building on its substantial gains for the week that now total over 60%. The company has laid out plans to expand into high-performance computing and recently appointed Wayne Duso, a former executive from Amazon Web Services, to its board, signaling a strategic shift towards integrating cloud and computational capabilities into its operations.
Circle Internet, the issuer of the USDC stablecoin, also enjoyed a robust rally, with its stock climbing by 16%. This increase marked a significant turnaround for Circle, breaking the downward trend that has seen its stock plummet around 60% since its post-IPO peak in June. Analysts suggest that this rally may be driven more by technical factors rather than any specific news catalyst.
In addition to these companies, other crypto exchanges and platforms such as Coinbase (COIN), Robinhood (HOOD), and bitcoin miners Marathon Digital (MARA) and Riot Platforms (RIOT) also registered gains, outperforming the broader equity markets. The S&P 500 index rose by 0.82%, while the Nasdaq 100 index increased by 0.69%.
Conversely, bitcoin treasury vehicles like Metaplanet (3355) and Nakamoto (NAKA) saw declines of 10% and 14%, respectively. Meanwhile, MicroStrategy, known for being a significant corporate holder of Bitcoin, remained relatively stable despite the fluctuations in the market.
The overall market movements emerged against a backdrop of rising Bitcoin prices, which neared the $115,000 mark after initially dipping in response to news of surging CPI inflation and increasing jobless claims in the United States early in the day. Market experts are closely monitoring these trends, suggesting that investors should remain vigilant as macroeconomic factors continue to influence market dynamics.
