In the realm of Bitcoin and cryptocurrency-related enterprises, two industry giants, Coinbase and MicroStrategy, are witnessing a notable uptrend in pre-market trading today.
This surge aligns closely with the recent breakout in Bitcoin’s price, which has experienced a commendable 7% increase in the past 24 hours, inching closer to the $46,000 milestone.
Coinbase, a leading cryptocurrency exchange, saw its pre-market stock price surge by 6.4%, reaching $184.99. This increase followed the year-end closing at $173.92 in 2023. However, it’s noteworthy that COIN has since corrected, experiencing a 6% drop since the market opened.
Over the last month, Coinbase shares have exhibited a 36% increase, with an impressive 420% surge over the past year. Despite these gains, COIN stock remains approximately 46% below its all-time high recorded in November 2021.
Similarly, MicroStrategy, renowned for its substantial Bitcoin holdings, witnessed a notable surge in its share value, experiencing a 9.3% increase. This propelled the price to $690.30 in today’s pre-market trading, following a year-end closing price of $631.6.
The surge in Bitcoin’s value and related stocks like Coinbase and MicroStrategy is significantly attributed to the growing anticipation of the approval of U.S. spot BTC ETFs. These ETFs are expected to streamline the investment process in Bitcoin, offering improved regulation and heightened appeal, potentially enhancing 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 contextualized within the expected approval of U.S. spot Bitcoin ETFs. Coinbase, having been selected by entities such as BlackRock, Franklin Templeton, and Grayscale, is poised to provide custodial services for their forthcoming spot Bitcoin ETFs.
A spokesperson from Coinbase expressed the company’s readiness for ETF approval, emphasizing the system’s capability to handle the anticipated surge in trading volume and demand.
In the previous week, MicroStrategy announced the acquisition of an additional 14,620 Bitcoins between November 30 and December 26, bringing 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 Bitcoin investment is currently reflecting a paper gain of $2.8 billion.
