Crypto mining stocks are climbing and trending on social media this morning as Bitcoin (BTC-USD) is surging 6%, taking the cryptocurrency over the $30,000 level.
Crypto-mining names Marathon Digital (NASDAQ:MARA), Riot Platforms (NASDAQ:RIOT), and Hut 8 Mining (NASDAQ:HUT) are among the crypto stocks significantly advancing in early trading. MicroStrategy (NASDAQ:MSTR), which owns a great deal of Bitcoin, is also climbing.
According to Coindesk, Bitcoin has reached its highest level since June 2022.
Potential Reasons for Bitcoin’s Surge
With the U.S. government prepared to release inflation data for March tomorrow, Bitcoin buyers may be betting that the inflation figures for last month will come in higher than expected. Such an outcome could cause Bitcoin to climb because some believe crypto is a better store of value amid elevated inflation than the U.S. dollar.
Moreover, the recent failures of two major U.S. banks and the near-failure of Credit Suisse (NYSE:CS) have caused crypto advocates to suggest that crypto is a safe haven amid banks’ issues.
Finally, after French President Emmanuel Macron said that Europe should become less dependent on the “extraterritoriality of the U.S. dollar,” some pundits have suggested that the greenback’s status as the world’s reserve currency is in jeopardy. If the dollar does lose that status, its value would likely plummet a great deal, potentially causing more people to buy Bitcoin and boosting the crypto’s price.
More About the Crypto Mining Stocks Climbing
MicroStrategy owned about $3.9 billion of Bitcoin as of April 4, while Riot Platforms and Marathon Digital both mine Bitcoin. The Wall Street Journal explained that those firms’ “business involves using computers to solve complex cryptographic puzzles in a process that secures the Bitcoin network and processes transactions on the blockchain.” Hut 8 also mines Bitcoin and was the first Canadian “digital asset miner” listed on the Nasdaq.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.