Bitcoin is trading at levels previously seen in April 2022, shrugging off a tough year marked by several implosions and regulatory clampdowns.
Stocks of Coinbase (COIN) and MicroStrategy (MSTR) jumped nearly 9% ahead of the market open as bitcoin (BTC) surged 4% in the past 24 hours to extend its year-to-date gains to over 150%.
Traders consider the two companies as proxy bets for the crypto markets, given their close ties to bitcoin.
Coinbase is one of the largest crypto bourses by trading volumes and is among the few publicly listed crypto companies in the U.S. The firm, which has historically maintained a regulated stance, is listed as a custodian for several proposed bitcoin spot exchange-traded fund (ETF) products in the country.
The crypto exchange’s Nasdaq-listed shares reached their highest level since April 2022 last week, closing at $133 on Friday to extend year-to-date returns to over 200%.
Business software company MicroStrategy, on the other hand, is the largest public holder of bitcoin with its 174,000 BTC holding, a position it acquired over a three-year period by investing company funds and proceeds from bond sales. The value of the holdings is now equal to over 88% of MicroStrategy’s $8.2 billion stock market capitalization.
MSTR traded at $574 ahead of Monday’s open, reaching a level previously seen in April 2022.
Bitcoin has surged recently amid optimism U.S. regulators will approve exchange-traded funds (ETFs) that hold BTC, a move some experts believe will prompt a flood of investment into the foremost cryptocurrency.
Crypto miners Marathon Digital (MARA) and Riot (RIOT) jumped over 10%, while Hut 8 (HUT) jumped nearly 450% in premarket trading.
Source: Crypto Insider