Bitcoin-linked equities diverge as miners and digital firms surge while treasury vehicles stumble
Crypto-related stocks surged on Thursday, with Galaxy Digital, Circle Internet and Bitfarms posting double-digit gains, even as major bitcoin treasury vehicles Metaplanet and Nakamoto slumped. The sharp divergence came despite a relatively steady performance in the broader market, with bitcoin trading modestly higher at $114,275, its strongest level since mid-August.
Miners and digital firms gain momentum
Galaxy Digital, led by Mike Novogratz, jumped 12% after participating in Forward Industries’ $1.65 billion fundraising to launch a Solana treasury vehicle. Analysts suggested that rising interest in data centers and artificial intelligence hosting deals could be lifting sentiment toward Galaxy’s diversified operations.
Bitfarms, one of the sector’s most active bitcoin miners, soared 18% Thursday, extending weekly gains above 60%. The rally follows the firm’s expansion into high-performance computing and the appointment of Wayne Duso, a former Amazon Web Services executive, to its board. “The market is rewarding miners that are repositioning for the AI era,” noted one industry strategist.
Circle, issuer of the USDC stablecoin, rose 16% in what traders described as a technical rebound after months of decline. The stock had previously lost around 60% from its post-IPO peak, pressured by regulatory concerns and falling stablecoin volumes.
Treasury-focused firms under pressure
While operational crypto firms rallied, treasury vehicles suffered sharp losses. Japanese-listed Metaplanet dropped 10%, and Nakamoto fell 14%, despite bitcoin’s advance. In contrast, MicroStrategy (MSTR), the largest corporate holder of BTC, traded flat.
Market observers pointed to profit-taking and concerns over limited diversification in treasury-heavy firms. “When bitcoin moves modestly, companies relying solely on treasury exposure may underperform compared to miners or infrastructure plays,” said a Tokyo-based analyst.
Broader equities remain calm
Crypto stocks outpaced the traditional market, with the S&P 500 up 0.82% and the Nasdaq 100 gaining 0.69%. The divergence underscores growing investor appetite for crypto infrastructure and mining firms, even as treasury-based plays face volatility.
The trend signals that institutional investors may be shifting focus from pure bitcoin holdings toward companies building long-term utility in the digital economy.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.