The crypto market is on the move again, with Bitcoin’s price crossing the $71,000 mark for the first time since June. This surge has had a positive ripple effect on crypto-related stocks, particularly MicroStrategy Inc (MSTR) and Coinbase Global Inc (COIN).
Bitcoin’s impressive 3.76% increase over the past 24 hours, reaching approximately $71,600 at the time of writing, has invigorated the broader crypto market. This upward momentum can be attributed to several factors, including significant Bitcoin ETF inflows totaling $479 million on Monday alone. Notably, Bitcoin ETFs have witnessed inflows for 11 of the past 12 trading days, signifying a growing appetite for Bitcoin exposure. Increased derivatives activity further underscores the escalating interest in Bitcoin.
Coinbase, a leading cryptocurrency exchange, has benefited from this increased volatility in the crypto market. As a platform that facilitates trading, Coinbase thrives on price fluctuations as they drive increased trading activity. This positive correlation is reflected in Coinbase’s stock price performance.
MicroStrategy, a company primarily known for its business intelligence and cloud-based services, has become synonymous with Bitcoin. As of June 30, MicroStrategy held a staggering 226,331 Bitcoins, acquired at an average price of $36,821. This massive Bitcoin holding makes MicroStrategy’s stock price highly sensitive to Bitcoin’s fluctuations, allowing the company to leverage its position for strategic capital management. The company’s Bitcoin holdings enable it to secure low-cost financing, which in turn fuels further Bitcoin purchases.
Both Coinbase and MicroStrategy are scheduled to release their third-quarter financial results after market close on Wednesday. Analysts anticipate Coinbase to report earnings of 43 cents per share and revenue of $1.253 billion, according to estimates from Benzinga Pro. MicroStrategy, on the other hand, is projected to report a loss of 14 cents per share and revenue of $122.66 million.
At the time of writing, MicroStrategy shares were up 1.17% at $258.21, and Coinbase shares were up 1.09% at $218.41. The ongoing Bitcoin rally has clearly injected optimism into the crypto-related stock market, with these companies poised to benefit from the growing demand for Bitcoin and the associated trading activity.
