Stocks with sizable Bitcoin treasuries have struggled since the top cryptocurrency peaked — except one.
Galaxy Digital, the crypto firm run by Wall Street exile Mike Novogratz, gained 11% between Bitcoin’s record high on February 19 and March 4.
Bitcoin dropped 13% from its peak, and while it’s hard to quantify its influence over Bitcoin treasury stocks (bar MicroStrategy), Galaxy clearly stood out.
- MicroStrategy dropped over 30% since Bitcoin’s all-time high.
- Tesla and Square lost 20% from their share prices.
- Riot Blockchain stock was hardest hit, down over 37%.
Galaxy operates as an investment bank and trading desk within the crypto space, and last month disclosed $1.2 billion in assets under management — up 45% in the year-to-date.
Not just Bitcoin treasury stocks in the red
Digital asset manager Voyager Digital performed second-best, down around 8% and on par with the tech-heavy NASDAQ 100 index.
Indeed, benchmark indices NASDAQ 100 and S&P 500 are also in the red since BTC peaked.
This renders the link between our treasury stocks and Bitcoin’s price a little more tenuous — but that only further highlights Galaxy stock.
Of course, as always with Bitcoin (and increasingly with Bitcoin treasury stocks), it helps to zoom out.
Looking at returns over the past year, every stock with a sizable Bitcoin treasury has outperformed the benchmarks.
However, it’s worth noting Bitcoin has now outperformed MicroStrategy and Tesla — the two stocks with the biggest treasuries — over the past year.
Unfortunately, Galaxy Digital stock dropped up to 10% during Friday morning trade. Let’s see how it sticks the landing.