Shares of U.S. companies with exposure to cryptocurrencies experienced an upward tick in pre-market trading following a surge in the price of bitcoin (BTC) to its highest level since May 2022. During Asian trading hours on Thursday, BTC surpassed $36,000 for the first time in approximately 18 months. This bullish momentum extended to publicly-traded firms in the U.S. with crypto exposure, including Coinbase, MicroStrategy, Robinhood, Marathon Digital, and Riot Blockchain.
Most of these companies had experienced a decline in stock prices on Wednesday, but the recent rally in bitcoin seems to have reversed their downward trajectory. As of 11:03 UTC (6:03 ET), Coinbase had seen a 4% increase in its stock, MicroStrategy, which holds 158,400 BTC on its balance sheet, rose nearly 5%, while Marathon Digital and Riot Blockchain saw gains of 9.8% and 6% respectively. Robinhood, on the other hand, exhibited more modest gains of 2.5%. The trading platform had closed on Wednesday with a decline of over 14% after reporting significant drops in revenue and trading activity earlier in the week.
These recent gains may also be attributed to renewed optimism regarding the potential approval of a spot bitcoin exchange-traded fund (ETF) in the U.S. Reports have emerged that the Securities and Exchange Commission (SEC) has initiated discussions with Grayscale Investments regarding the conversion of its bitcoin trust product into an ETF. This development has sparked hope among investors, further driving the positive sentiment in the market.
It is worth noting that the approval of a bitcoin ETF in the U.S. would mark a significant milestone for the cryptocurrency industry, as it would provide a regulated and accessible investment vehicle for institutional and retail investors alike. Such an ETF would likely attract substantial capital inflows into the crypto market, potentially contributing to further price appreciation.
In conclusion, the surge in bitcoin’s price has had a positive impact on U.S. crypto-centric companies, with their stock prices rebounding after a previous decline. The possibility of a spot bitcoin ETF being approved in the U.S. has also added to the optimism in the market. Investors are eagerly awaiting further developments and regulatory decisions that could shape the future of cryptocurrencies in the country.