Coinbase up 69%, MicroStrategy up 74% since lows
The share price of cryptocurrency exchange Coinbase has risen 69% since its all-time lows, and other crypto-related stocks, including business intelligence firm MicroStrategy, have recorded similar jumps – green lights have been around since the start of 2023.
Shares on Coinbase fell as low as $31.95 on January 6, before soaring to $54.14 at the close on January 17.
The rising share price is likely to be accompanied by a big sigh of relief for Coinbase executives after a challenging 2022 in which it cut 20% of its workforce and spun off its Japanese operations. Despite the increase, COIN remains more than 84% below its all-time high.
Other crypto-related stocks such as MicroStrategy and digital payments company Block Inc. have also made strong gains in the new year.
MicroStrategy’s stock price has rallied to nearly $236 from a low of just over $135 on December 29 – representing an increase of over 74% – while Jack Dorsey’s Block has seen its share price rise by a subdued but still respectable 27% after having rebounded from a low of below $59 on December 28 to above $75.
The rise has been even more dramatic for cryptomining stocks. Bitfarms and Marathon Digital Holdings recorded increases of 140% and 120% respectively through the first two weeks of the year.
Crypto exchange-traded funds (ETFs) also rebounded to a lesser extent, with the Valkyrie Bitcoin Miners ETF (WGMI) more than doubling in price from a low of just over $4 on December 28 to over $8.
The ProShares Bitcoin Strategy ETF (BITO) jumped from above $10 on Dec. 28 to a current price of around $13 — up by just under a third.
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Even Grayscale Bitcoin Trust has managed to recoup some of its losses in 2022, rising from a low of $7.76 on December 28 to a current price of $11.72, a 51% increase.
Although the trust is designed to mirror the price of Bitcoin (BTC), it often trades at a discount or premium to the value of its underlying holdings. It’s now just over 36% off, after trading at over 45% off on December 28th.
Some pundits believe that Bitcoin in particular has skyrocketed on the back of the positive US inflation numbers released on January 12th – with BTC increasing in price by over 17% since then – but it is interesting to note that on December 28 appeared to represent a market bottom across many cryptocurrencies and stocks.
While the recent surge in crypto-related stocks is bound to be a big relief to those who have invested in them, it’s worth noting that many of these companies have a long way to go to return to their all-time highs highs, as highlighted by a Jan. 10 tweet from financial advisor Genevieve Roch-Decter.
