Coinbase (COIN) and MicroStrategy (MSTR) stocks experienced a notable jump of nearly 9% in premarket trading, closely tied to Bitcoin's recent surge of 4% in the past 24 hours, extending its year-to-date gains to over 150%. These companies are considered proxies for the crypto market due to their substantial investments in Bitcoin.
Coinbase, a leading crypto exchange, has seen its shares reach the highest level since April 2022, with year-to-date returns exceeding 200%. This surge is attributed to the company's role as a custodian for several proposed Bitcoin spot exchange-traded funds (ETFs) in the U.S. MicroStrategy, known for its significant Bitcoin holdings of 174,000 BTC, has seen its stock value align closely with Bitcoin's performance. Its stock traded at $574, reaching a level last seen in April 2022.
This rally in Bitcoin and related stocks comes amid growing optimism that U.S. regulators will approve Bitcoin ETFs, which could lead to increased investment in the cryptocurrency. Additionally, other crypto-related stocks like Marathon Digital (MARA) and Riot (RIOT) jumped over 10%, while Hut 8 (HUT) soared nearly 450% in premarket trading. The rise in Bitcoin's value has boosted the profitability of these crypto mining companies.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.