MicroStrategy and Coinbase Share Prices Soar with Bitcoin’s Climb Ahead of ETF Decision
Summary:
Bitcoin-focused MicroStrategy and crypto exchange Coinbase saw their stocks increase up to 9% during the pre-market trading session, following a surge in Bitcoin's price. This trading period, taking place before the market's daily opening, saw Coinbase and MicroStrategy stocks rise due to anticipation of Bitcoin ETF approval. Despite a downturn last year, crypto-focused public companies like MicroStrategy and Coinbase lead the charge in a resurgence, thanks to their significant roles in the cryptocurrency sector.
MicroStrategy, a company focused on Bitcoin, along with cryptocurrency exchange Coinbase, saw their stock prices rocket during the early trading hours following Bitcoin's price surge past $45,000, ahead of the Bitcoin ETF ruling set for January 10th. In the pre-market trading period on January 2nd, both Coinbase and MicroStrategy experienced boosts of 6% and 9% respectively; with Coinbase's stock increasing 6.4% to $184.99, and MicroStrategy's grew by 9.14% to $689.11.
These pre-market trading periods take place in the hours leading up to the 9:30 a.m. Eastern Time market opening in New York, permitting investors to buy and trade stocks before the general market commences.
In the previous month, Coinbase’s stock price ascended by 36% and impacted the year by almost 420% following a subpar 2022. Nevertheless, the share price for the first U.S. crypto exchange to go public is currently 46% below its peak of $343, reached following its 2021 public launch. Similarly, after witnessing a 25% surge and a 372% yearly increase, MicroStrategy's shares are currently 8% lower than the $750 high for 2021.
Crypto-focused public companies like PayPal or Block Inc., saw a dip during the early hours of trading, despite positive signals in the Bitcoin market. Though, this trend could alter once the U.S. market begins trading. The recent increase in the stock prices of cryptocurrency-focused companies contrasts with the downward spiral many crypto-related companies experienced towards the end of the year, when their stocks plummeted during substantial market corrections. Many have attributed this recent surge to the pending approval of a Bitcoin ETF. MicroStrategy still holds its position as the largest Bitcoin holder, while Coinbase has been selected to serve as a custodian by multiple large institutions seeking to launch their Bitcoin ETFs.
Published At
1/2/2024 3:46:33 PM
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