Oftentimes in the cryptocurrency space, investments move in concert with the largest and most important coin. That was the dynamic in force on Thursday when crypto and crypto-adjacent stocks like Riot Platforms (RIOT 14.52%) and Silvergate Capital (SI 12.89%) soared on the back of Bitcoin‘s (BTC 7.03%) advance. Riot closed the day almost 15% higher, while Silvergate cruised to a nearly 13% increase.
Several factors combined to push up Bitcoin and other key cryptocurrencies, not least of which was the government’s inflation data that was released in the morning. The top coin was trading notably higher to the point where it crossed the $18,000 price level. The last time it was that high was in November of 2022. Other major coins and tokens were also heading north, such as Ethereum and Cardano.
Riot and Silvergate are rather different animals. The former is essentially a pure-play Bitcoin miner — at least for now — so the coattail effect for that stock is clear.
Silvergate is in many ways a traditional bank but is often lumped in with other crypto assets since its Silvergate Exchange Network (SEN) is a real-time payments platform that services users from cryptocurrency exchanges and institutions. The more sprightly the digital coin market, the more SEN (and by extension, Silvergate) stands to benefit.
While it’s too soon to tell if this is a bona fide cryptocurrency rally, it seems bulls are starting to pile into digital coinage again. If the trend lasts, Riot, Silvergate, and any stock closely tied to such assets will surely continue to do well.
Eric Volkman has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Cardano, and Ethereum. The Motley Fool recommends Silvergate Capital. The Motley Fool has a disclosure policy.