Coinbase and MicroStrategy Shares Soar in Pre-Market Trading as Bitcoin Breaks Out

Crypto News- This morning witnessed substantial gains in the shares of both Coinbase and MicroStrategy, with increases of approximately 6% and 9%, respectively, during pre-market trading. This notable upswing corresponded with Bitcoin’s surge beyond $45,000, fueled by heightened expectations surrounding the imminent approval of U.S. spot Bitcoin ETFs.

Coinbase and MicroStrategy Shares Soar in Pre-Market Trading as Bitcoin Breaks Out

In early New Year trading, Coinbase’s stock surged by 6.4% to $184.99, reflecting a remarkable 36% rise over the past month and an impressive 420% surge over the last year, as indicated by TradingView. Despite these gains, COIN still stands around 46% below its record high of $343 in November 2021. The current valuation of Coinbase is reported to be $32.4 billion, according to data from The Block.

Similarly, MicroStrategy’s shares experienced a significant 9.3% surge in pre-market trading, reaching $690.30, following the year-end close at $631.6. Over the past month, MicroStrategy stock displayed a 25% gain, and the yearly surge stands at an impressive 372%, according to TradingView. Despite this surge, MSTR is presently 8% below its 2021 high of $750.

These market movements align seamlessly with the recent uptick in Bitcoin prices, climbing by approximately 7% in the last 24 hours and nearing the $46,000 mark. The mounting anticipation for the approval of U.S. spot Bitcoin ETFs in the upcoming days played a pivotal role in this surge. As of the latest update, Bitcoin is trading at $45,653, according to The Block’s price page.

Foreseeing the Arrival of the Bitcoin Spot ETF

Coinbase, a leading cryptocurrency exchange, has been chosen by several spot Bitcoin ETF applicants, including BlackRock, Franklin Templeton, and Grayscale, to provide custodial services for the funds. Coinbase has conveyed its preparedness for ETF approval, asserting that their systems are well-equipped and tested to handle heightened trading volume, increased liquidity, and overall demand.

In the preceding week, MicroStrategy, a renowned software firm with significant Bitcoin holdings, disclosed the addition of 14,620 BTC to its portfolio between Nov. 30 and Dec. 26. With a cumulative holding of 189,150 BTC, valued at around $8.7 billion at current prices, MicroStrategy continues to demonstrate a bullish stance on Bitcoin. This strategic purchase, made at an average price of $31,168, currently reflects a paper profit of $2.8 billion.