Shares of MicroStrategy and Coinbase Skyrocket as BTC Approaches $46,000

Shares of two of the largest and most prominent Bitcoin and crypto-related companies have experienced a significant increase in pre-market trading today.

This surge is closely correlated with the recent breakout in the price of Bitcoin, which has risen by approximately 7% in the last 24 hours, approaching the $46,000 milestone.

Coinbase and Microstrategy Stocks Skyrocket

Coinbase, a leading cryptocurrency exchange, saw its pre-market stock price climb by 6.4%, reaching $184.99. This spike came after the stock closed 2023 at $173.92. It’s worth noting that COIN has since corrected and dropped by 6% since the market opened.

Over the past month, Coinbase shares have increased by 36% and have seen an almost 420% increase over the past year. Despite these gains, COIN stock remains about 46% below its all-time high, recorded in November 2021.

Similarly, MicroStrategy, renowned for its significant Bitcoin holdings, also witnessed a noteworthy surge in its share value. The company’s shares observed a 9.3% increase, propelling the price to $690.30 in today’s pre-market trading. This surge follows a year-end closing price of $631.6.

The stock has recorded a 25% gain in the past month and an impressive 372% surge over the previous year.

Spot Bitcoin ETF Anticipation Fuels the Surge

A significant driver behind the surge in both Bitcoin’s value and related stocks like Coinbase and MicroStrategy is the growing anticipation of the approval of U.S. spot BTC ETFs.

These ETFs are expected to simplify the investment process in Bitcoin, offering easier regulation and heightened appeal, thereby potentially elevating 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 seen in the context of the expected approval of U.S. spot Bitcoin ETFs. Coinbase has been selected by several entities, including BlackRock, Franklin Templeton, and Grayscale, to provide custodial services for their upcoming spot Bitcoin ETFs.

A spokesperson from Coinbase expressed the company’s preparedness for the ETF approval, highlighting their system’s capability to handle the anticipated increase in trading volume and demand.

Last week, MicroStrategy announced the addition of 14,620 Bitcoins to its holdings, which were conducted between November 30 and December 26. This acquisition brings the company’s total Bitcoin possession to 189,150, valued at approximately $8.7 billion at current prices.

Having purchased its Bitcoin at an average price of $31,168, MicroStrategy’s investment is currently showing a paper gain of $2.8 billion.