Crypto-linked stocks extend rally that produced 400% gains

Cryptocurrency-linked stocks rose Wednesday as Bitcoin headed for its biggest monthly gain since 2019, extending a rally that’s seen some companies’ shares more than quintuple since the end of October.

Marathon Patent Group Inc., which has soared 444% over the past two months, added another 4.4% Wednesday. Riot Blockchain Inc. rose as much as 7.1% Wednesday after gaining 383% since Oct. 30. And Bit Digital Inc., which surged 81% on Monday alone, jumped another 31%.

Canadian-listed Hive Blockchain Technologies gained as much as 6% early Wednesday, with shares nearly doubling since the start of December. Also, Mike Novogratz’s Galaxy Digital Holdings rose another 3.4%, pushing the shares more than 60% higher since the start of the month.

The price of Bitcoin briefly rose above $28,000 Wednesday to a record high, bringing its December gain to more than 40%. Other cryptocurrencies have also surged, with the Bloomberg Galaxy Crypto Index up 270% in 2020.

Some investors see Bitcoin as a gold-like hedge against inflation and U.S. dollar weakness, while others see it as too speculative to provide a safe haven.