Shares of two of the largest and most well-known Bitcoin and crypto companies saw a significant increase in pre-market trading today.
This increase is closely related to the recent breakout in Bitcoin price, which has increased by around 7% in the last 24 hours and is approaching the $46,000 milestone.
Coinbase and Microstrategy stocks are exploding
Coinbase, a leading cryptocurrency exchange, saw its share price rise 6.4% to $184.99 premarket. This jump comes after the stock closed 2023 at $173.92.
Over the past month, Coinbase shares have risen 36% and have seen a nearly 420% increase over the past year. Despite these gains, COIN stock remains approximately 46% below its November 2021 all-time high.
MicroStrategy, known for its significant Bitcoin holdings, also saw a notable increase in its stock value. The company's shares saw a 9.3% increase, pushing the price to $690.30 in today's pre-market trading. This increase follows a year-end price of $631.6.
The stock has seen a 25% gain over the past month and an impressive 372% increase year-over-year.
Anticipation for spot Bitcoin ETFs is driving the rise
A key driver of the rise in both Bitcoin's value and related stocks like Coinbase and MicroStrategy is the growing anticipation of U.S. spot BTC ETF approval.
These ETFs are expected to simplify the investment process in Bitcoin, offer easier regulation and greater attractiveness, thereby potentially increasing its market presence and investor interest.
Bitcoin itself has seen a 7% increase in the last 24 hours and is currently trading at $45,320.22. This increase can be seen in the context of the expected approval of US spot Bitcoin ETFs. Coinbase has been selected by several companies, including BlackRock, Franklin Templeton, and Grayscale, to provide custodial services for their upcoming spot Bitcoin ETFs.
A Coinbase spokesperson expressed the company's readiness for ETF approval and highlighted the ability of its system to handle the expected increase in trading volume and demand.
Last week, MicroStrategy announced the expansion of its holdings by 14,620 Bitcoins, which was carried out between November 30 and December 26. This acquisition brings the company's total holdings of Bitcoins to 189,150, which is worth approximately $8.7 billion at current prices.
After MicroStrategy purchased its Bitcoin at an average price of $31,168, the investment is currently reporting a paper profit of $2.8 billion.
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