2020's bitcoin rally has made it a great year for crypto stocks

It's been an blockbuster year for the digital asset market with bitcoin soaring to all-time-highs above $29,000 for the first time.

Bitcoin's more than 300% gain in 2020 has been coupled with similar gains in the stock of publicly traded firms in crypto. 

Firms with businesses in the crypto market, like Galaxy Digital and Silvergate, appreciated by more than 100%, while firms that advocate for the market — most notably Michael Saylor's MicroStrategy, also saw gains, according to data compiled by The Block Research.

• Galaxy Digital: 952%
• Microstrategy: 166%
• Silvergate: 360%
• Square: 239%

There was one notable exception, Signature Bank was down 1% year-to-date. 

Source: TradingView

Mining stocks also had a good year, according to data compiled by The Block Research. Cannan, which listed on Nasdaq late last year, is one exception. 

• Hive: 2,511%
• Riot Blockchain: 1,302%
• Marathon Patent Group: 892%
• Hut 8 Mining: 231%
• Ebang: 20%
• Cannan: -2%

Source: TradingView

In a sense, the gains by crypto stocks in 2020 represent a stark difference from those in the previous bull market cycle of 2017. Then, companies pivoted to blockchain to capitalize on the fervor. Long Island Ice Tea saw its stock price soar by 200% in one trading session after it changed its name to Long Blockchain. 

This time around, companies are seeing their share price rise alongside a growing business—at least partially. Silvergate, for instance, added $586 million in new deposits during the third quarter of the year. Its fee income from cryptocurrency customers, meanwhile, increased by 40%. 

Galaxy Digital posted relatively strong third quarter financials. The New York-based merchant bank said that its trading business saw volumes top $1.4 billion during the period— a 75% increase year-over-year. As for Galaxy's financials, the company posted income of $44 million for the quarter compared to the $68 million loss it reported in Q3 2019.