Bitcoin’s (BTC) recent rally, peaking at $99,655, has reignited enthusiasm for cryptocurrency-linked stocks. Despite failing to breach the $100,000 milestone, President-elect Donald Trump’s pro-crypto regulatory stance following his re-election on November 5 has triggered bullish sentiment in the market.
Major U.S. corporations have ramped up Bitcoin investments, fueling a surge in the value of crypto-related equities.
Among the top performers are MARA Holdings (NASDAQ: MARA) and MicroStrategy (NASDAQ: MSTR), both of which offer compelling opportunities for traders and investors seeking exposure to Bitcoin’s growth.
MARA Holdings (MARA) stock: A Mining powerhouse
MARA Holdings, the largest public Bitcoin miner by hashrate, has gained significant attention from Wall Street, with its stock climbing 44% over the past week and 33% in the past month. Closing at $26.42, MARA continues to benefit from its approach to Bitcoin mining.
On November 20, MARA Holdings completed a $1 billion offering of convertible senior notes due 2030. Of this, $199 million will repurchase existing convertible notes due 2026, while the remaining funds will support Bitcoin acquisitions and other corporate needs, including debt repayment and strategic expansions.
The company’s “HODL” strategy, where it retains mined Bitcoin rather than selling, allows it to operate as a leveraged play on Bitcoin’s price movements. Currently holding 33,875 BTC, MARA remains a dominant force, second only to MicroStrategy in corporate Bitcoin ownership.
Cantor Fitzgerald recently raised its price target for MARA to $42, highlighting its operational efficiency and ability to mine Bitcoin at a 40% discount to the spot price. The firm emphasized that Marathon’s reduced dependence on third-party hosting will lower mining costs further, boosting profitability over the long term.
While MARA missed Q3 revenue expectations, reporting $131.6 million versus the $148.1 million forecast, it achieved a 34.5% year-over-year revenue growth and an increase in its energized hash rate to 37 exahashes per second (EH/s).
MicroStrategy (MSTR) stock: The Bitcoin proxy
MicroStrategy, widely viewed as a proxy for Bitcoin, continues to outperform the cryptocurrency itself. Its strategic approach of acquiring Bitcoin through debt-financed convertible bonds has elevated its stock by 58% this month, closing at $403.
Over the past five years, MSTR has delivered a staggering return of 2,584%, compared to Bitcoin’s 1,113%.
The company currently holds 331,200 BTC, purchased at an average price of $49,874 per coin, with a total investment of $16.5 billion. On November 20, MicroStrategy issued $2.6 billion in convertible bonds to fuel additional Bitcoin acquisitions, further leveraging its balance sheet for strategic growth.
Unlike Marathon’s mining-focused model, MicroStrategy operates as a corporate Bitcoin vault, benefiting from a positive feedback loop.
Higher Bitcoin prices increase the company’s equity value, enabling it to raise more capital for further Bitcoin purchases. This approach has allowed the company to act as a Bitcoin bank, leveraging low-interest debt to accumulate appreciating assets.
Analysts are cautiously optimistic about MicroStrategy’s strategy, seeing it as a high-risk, high-reward play. During bullish periods, it delivers outsized gains, but the tied relationship can lead to significant drawdowns during market downturns.
Both MARA Holdings and MicroStrategy offer distinct yet compelling avenues for Bitcoin exposure.
Marathon’s focus on efficient mining operations and its substantial Bitcoin reserves provide a more direct link to the cryptocurrency’s price movements. Meanwhile, MicroStrategy’s leveraged approach amplifies returns during bullish cycles, making it a high-reward option for risk-tolerant investors.
As Bitcoin edges closer to the $100,000 mark and regulatory conditions improve under the Trump administration, both stocks are well-positioned to thrive in 2025.
Traders and investors should monitor these stocks closely as they navigate the volatile yet promising landscape of digital assets in 2025.
Featured image via Shutterstock
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