On January 2, Bitcoin approached the $46,000 mark, leading to a 7% surge. This increase significantly impacted the stock prices of Coinbase (COIN) and MicroStrategy (MSTR), rising by 6% and 9%, respectively. COIN reached $187.29, and MSTR hit $689.35 during this period.
The upward movement in Bitcoin’s value was fueled by expectations of imminent approval for spot BTC exchange-traded funds (ETFs), following a Reuters report hinting at a decision from the US Securities and Exchange Commission (SEC) between January 2 and 3.
COIN’s stock surge is linked to its inclusion by various spot BTC ETF filers for surveillance sharing agreements (SSA), with firms like BlackRock and Fidelity planning to utilize Coinbase. As the largest US-based exchange, Coinbase’s involvement is crucial in handling a significant portion of US-based and USD-denominated Bitcoin trading.
MicroStrategy‘s stock surge is attributed to its status as one of the largest holders of BTC, making it an appealing choice for investors seeking indirect exposure to Bitcoin.
In the last week of 2023, the company revealed the addition of 14,620 BTC to its portfolio, valued at approximately $615 million. With a total of 189,150 Bitcoins now worth around $8.7 billion, MicroStrategy has recorded over $2.8 billion in paper profits on these holdings, contributing to the positive momentum in its stock.
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