Bitcoin’s Resurgence: A Boost to Crypto Stocks
The cryptocurrency market has witnessed a significant surge in recent days, with Bitcoin (BTC) making a strong comeback, surging past $71,000 after a month of sideways trading. According to CoinMarketCap data, the largest cryptocurrency by market capitalization is now around 3.4% away from its all-time high of $73,737, which it reached in March.
Bitcoin’s price surge
The rally in Bitcoin’s price has had a positive impact on companies associated with the crypto industry. MicroStrategy (MSTR), a software company, has seen its stock surge over 6%, currently trading at $1,531.67 per share. MicroStrategy has actively added BTC to its balance sheet this year, holding $15 billion worth of Bitcoin currently. Since January, the company’s stock has more than doubled, boasting a remarkable 122% gain. Michael Saylor, the co-founder and chairman of MicroStrategy, has advocated that investing in the company’s stock provides a safe way for investors to gain exposure to BTC.
MicroStrategy’s stock surge
US-based crypto exchange Coinbase (COIN), the largest crypto exchange in the United States, has also experienced a surge of over 6% in its stock price. The exchange, which went public in 2021, has been performing well this year. In February, Coinbase shared its Q4 2023 results, showing a return to profitability. Currently priced at $255.99 per share, Coinbase’s stock has jumped by over 63% in 2024.
Coinbase’s stock surge
However, Bitcoin mining companies are not seeing significant gains. Hut 8 Corp (HUT) has seen a marginal jump of less than 2% and is currently priced at $9.14 per share. CleanSpark, a company that utilizes green energy for BTC mining, has observed a rise of over 1%, with its stock trading at $15.79.
Bitcoin mining companies
In other news, Genesis, a bankrupt cryptocurrency lending firm, has reportedly sold 36 million shares of the Grayscale Bitcoin Trust (GBTC) to acquire additional Bitcoin and settle its debts with creditors. The sale took place on April 2, with each share valued at around $58.50 at that time, resulting in a total amount of $2.1 billion.
Genesis sells GBTC shares
The sale of GBTC shares has raised concerns about the potential impact on the broader crypto market. However, cryptocurrency exchange Coinbase recently stated that the sell-off is not expected to have a significant impact on the market, as the funds will likely remain within the crypto ecosystem.
Coinbase’s statement
In conclusion, the recent surge in Bitcoin’s price has had a positive impact on crypto-related stocks, with companies like MicroStrategy and Coinbase experiencing significant gains. However, Bitcoin mining companies have not seen significant gains. The sale of GBTC shares by Genesis has raised concerns about the potential impact on the broader crypto market, but Coinbase has stated that the sell-off is not expected to have a significant impact.
Bitcoin’s resurgence
