Why Bitcoin-Related Stock Bitfarms Is Seeing Blue Skies

Bitfarms Ltd BITF shares are trading higher by 9.5% to $1.12 going into Monday's close. Shares of crypto and mining-related stocks are trading higher amid strength in Bitcoin after the apex cryptocurrency passed $31,000.

Bitcoin's current momentum is partly driven by positive expectations for a spot ETF. Both BlackRock and Fidelity have made changes to their ETF submissions, and Grayscale has filed to list its Bitcoin Trust shares on NYSE Arca, signaling their intention to transition the trust into a spot Bitcoin ETF.

Why This Matters To Bitfarms Investors

Bitfarms is a cryptocurrency mining company, and its profitability is closely tied to the price of Bitcoin. When the price of Bitcoin increases, it can lead to higher revenues and profitability for mining companies like Bitfarms.

Miners earn Bitcoin as a reward for processing and verifying transactions on the blockchain. When Bitcoin's price is higher, the value of these rewards increases, potentially resulting in higher revenues for Bitfarms.

This increase in revenue can drive investor confidence and enthusiasm for the company's stock, pushing its price higher.

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According to data from Benzinga Pro, BITF has a 52-week high of $2.16 and a 52-week low of $0.38.