By
Bena Ilyas
April 23rd, 2024
With MicroStrategy’s shares trading at $574 ahead of today’s open, a level not seen since April 2022, investors are closely watching the company’s performance amid the ongoing crypto resurgence.
Recent market dynamics have highlighted the impact of the ongoing Bitcoin (BTC) price rally on certain stocks, with Coinbase Global Inc (NASDAQ: COIN) and MicroStrategy Inc (NASDAQ: MSTR) emerging as key beneficiaries in this unique correlation. In the past 24 hours, both COIN and MSTR stocks experienced a remarkable 9% surge in value, mirroring the 4% rise in Bitcoin’s price during the same period.
As the crypto industry continues to garner attention, these companies, with their distinct approaches and roles in the Bitcoin ecosystem have become notable benchmarks for investors.
Coinbase Inc’s Regulatory Stance and Bitcoin ETF Contribution
Coinbase stands as one of the largest crypto exchanges globally, known for its robust trading volumes. What sets Coinbase apart is its status as one of the few publicly listed crypto companies in the United States. Known for its historically regulated stance, Coinbase plays a crucial role as the custodian for several proposed Bitcoin spot Exchange-Traded Fund (ETF) products in the country.
The recent surge in Coinbase’s Nasdaq-listed shares, reaching levels not seen since April 2022, reflects the market’s confidence in the platform. Closing at $133 on Friday, Coinbase’s year-to-date returns have extended to an impressive 200%. The heightened interest in crypto ETFs and the company’s commitment to regulatory compliance have undoubtedly contributed to this positive trajectory.
On the other hand, Business intelligence firm MicroStrategy has taken a distinctive approach by becoming the largest public holder of Bitcoin. As highlighted in an earlier report by Coinspeaker, the company holds a staggering 174,530 BTC, a position it acquired over three years through investments using company funds and proceeds from bond sales. Accordingly, the value of MicroStrategy’s Bitcoin holdings now accounts for over 88% of its $8.2 billion stock market capitalization.
With MicroStrategy’s shares trading at $574 ahead of today’s open, a level not seen since April 2022, investors are closely watching the company’s performance amid the ongoing crypto resurgence.
Bitcoin’s Rally and Its Impact on Related Stocks
As of the latest data from CoinMarketCap, Bitcoin is trading at $41,574, a figure that represents a year-to-date gain of over 150%.
The recent surge in Bitcoin’s price is closely tied to the optimism surrounding the US Securities and Exchange Commission (SEC) potentially approving a spot Bitcoin ETF. Many experts anticipate that such regulatory approval would trigger a substantial influx of both retail and institutional investment into the cryptocurrency, further driving its value upward.
This optimism has not only affected Coinbase and MicroStrategy but has also had a ripple effect on other crypto-linked stocks. The industry’s most popular crypto miners, including Marathon Digital Holdings Inc (NASDAQ: MARA) and Riot Platforms Inc (NASDAQ: RIOT), witnessed significant jumps of over 10% in premarket trading.
Furthermore, Hut 8 Mining Corp (NASDAQ: HUT) experienced an astonishing surge of nearly 450%, highlighting the broader impact of Bitcoin’s rally on the crypto market.