[ad_1]
What happened
Cryptocurrency is a hot commodity again on Monday, and stocks involved in all aspects of the crypto economy are benefiting.
At 1 p.m. EDT, shares of Grayscale Bitcoin Trust (OTC: GBTC) rose 8.3% and CleanSpark (NASDAQ: CLSK) jumped 10.8%. Canaan (NASDAQ: CAN) is doing the best, up 22.4%! And you know what? It all makes sense.
Image source: Getty Images.
So what
Now you’ve heard the news: Elon Musk is a Bitcoin fan again (CRYPTO: BTC) – sort of.
Over the weekend, the CEO of Tesla (NASDAQ: TSLA) tweeted his fans, initially, a confirmation of the rumor that Tesla had sold 10% of its Bitcoins. (Which sounds like bad news). But he also tweeted a promise: Once Tesla sees that Bitcoin miners have started using renewable energy to power at least 50% of their mining operation, “Tesla will start allowing” customers to buy Tesla cars again. with Bitcoin.
This is incorrect. Tesla only sold around 10% of the holdings to confirm that BTC could be liquidated easily without moving the market.
When there is confirmation of reasonable (around 50%) clean energy use by miners with a positive future trend, Tesla will resume allowing Bitcoin transactions.
Elon Musk (@elonmusk) June 13, 2021 And now
Now here’s the problem: At $ 40,100, Bitcoin prices are up about 9% today from where they were when the exchange closed on Friday. Given that Grayscale Bitcoin Trust is essentially a big pile of Bitcoins, it makes sense that Grayscale’s stock is now up by a similar amount.
But it also makes sense that a stock like Canaan, which produces integrated circuits used in Bitcoin mining in China, rises in anticipation that Musk’s support could lead to even more price increases for the crypto. -currency, further encouraging mining and the purchase of computers. with which to mine.
Finally, and in my opinion perhaps the most logical of all, is the price increase of CleanSpark. Generally speaking, CleanSpark manufactures software for energy regulation and energy efficiency, but more specifically, CleanSpark announced last month that through the use of “nuclear, hydroelectric and solar power” it can now mine Bitcoin using energy that is “95% … carbon-free” (and aims to be 98% carbon-free soon).
This fits in with the precondition Elon Musk set to bring Tesla back into the Bitcoin game – and it looks like CleanSpark’s stock is a logical beneficiary when it does.
This article represents the opinion of the writer, who may disagree with the official recommendation position of a premium Motley Fool consulting service. Were motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.
[ad_2]
picture credit