Shares of Coinbase and MicroStrategy Soar in Pre-Market Trading
The stock prices of Coinbase and MicroStrategy, two prominent Bitcoin and crypto-related companies, have experienced a significant surge in pre-market trading. This surge is closely tied to the recent breakout in the price of Bitcoin, which has risen by approximately 7% in the last 24 hours, nearing the $46,000 mark.
Coinbase’s Stock Price Jump
Coinbase, a leading cryptocurrency exchange, has seen its pre-market stock price climb by 6.4% to reach $184.99. This increase comes after the stock closed at $173.92 at the end of 2023. Over the past month, Coinbase shares have risen by 36% and have seen an impressive 420% increase over the past year. However, despite these gains, COIN stock remains about 46% below its all-time high reached in November 2021.
MicroStrategy’s Noteworthy Surge
MicroStrategy, known for its significant Bitcoin holdings, has also witnessed a notable surge in its share value. The company’s shares have observed a 9.3% increase, pushing the price to $690.30 in today’s pre-market trading. This surge follows a year-end closing price of $631.6. The stock has recorded a 25% gain in the past month and an impressive 372% surge over the previous year.
Anticipation of Spot Bitcoin ETF Approval Drives the Surge
The growing anticipation of the approval of U.S. spot BTC ETFs is a major factor behind the surge in Bitcoin’s value and related stocks like Coinbase and MicroStrategy. These ETFs are expected to simplify the investment process in Bitcoin, offering easier regulation and increased appeal, potentially boosting its market presence and investor interest.
Bitcoin itself has seen a 7% increase in the last 24 hours, currently trading at $45,320.22. This uptick is seen in anticipation of the approval of U.S. spot Bitcoin ETFs. Coinbase has been chosen by several entities to provide custodial services for their upcoming spot Bitcoin ETFs, including BlackRock, Franklin Templeton, and Grayscale. Coinbase has expressed its readiness for the ETF approval and its ability to handle the expected increase in trading volume and demand.
Last week, MicroStrategy announced that it acquired an additional 14,620 Bitcoins between November 30 and December 26. This brings the company’s total Bitcoin holdings to 189,150, valued at approximately $8.7 billion at current prices. With an average purchase price of $31,168, MicroStrategy’s investment is currently showing a paper gain of $2.8 billion.
Hot Take: Positive Momentum for Bitcoin-Related Stocks
The surge in pre-market trading for Coinbase and MicroStrategy stocks reflects the positive momentum surrounding Bitcoin and the anticipation of U.S. spot BTC ETF approvals. As Bitcoin continues to gain value and investors show increased interest in the cryptocurrency market, companies like Coinbase and MicroStrategy are well-positioned to benefit from this trend. The potential approval of spot Bitcoin ETFs could further enhance the accessibility and appeal of Bitcoin investments, leading to continued growth in these stocks. It will be interesting to see how these companies navigate the evolving landscape of digital assets and capitalize on the opportunities presented by the expanding crypto market.
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