Crypto-Linked Stocks Coinbase, MicroStrategy up Over 100% in a Month
- These four crypto-related stocks are up over 100% in the past month amid a broader tech rally.
- The Fed delivered its smallest rate hike in nearly a year on Wednesday, leaving traders to wager slightly riskier bets.
- Coinbase soared 26% Thursday after a judge dismissed a proposed class action lawsuit.
Crypto-linked stocks are on a tear this month as risk appetite grows on wagers that high inflation may be in the rearview mirror.
And four companies in particular have stood out, after more than doubling since the start of the year.
Crypto exchange Coinbase surged 143% in the past month to $81.76 on Friday, notching prices not seen since last September. The stock spiked 26% on Thursday after a judge dismissed a proposed class-action lawsuit against the crypto exchange.
MicroStrategy, which has bought up 132,500 bitcoin since August 2020, shot up 102% in the past month as well.
While the software company has lost money for eight consecutive quarters and reported a $1.47 billion net loss for 2022 on Thursday, shares are up and notched a nearly six-month high of $293 on Friday, tracking this year’s bitcoin rebound.
“Our corporate strategy and conviction in acquiring, holding, and growing our bitcoin position for the long term remains unchanged,” CFO Andrew Kang said.
Meanwhile, crypto mining companies Marathon Digital and Riot Platforms are up 130% and 127%, respectively, in the past month.
Investors are less risk averse as signs of slower inflation continue to mount, easing concerns about a hawkish Federal Reserve. That was confirmed Wednesday, when the central bank delivered its smallest rate hike in nearly a year.
Amid the more upbeat outlook on rates, stocks have seen a broader rally, with the tech-heavy Nasdaq Composite and the S&P 500 up 16.87% and 8.9% in the past month, respectively.
Crypto markets are also notching gains right now. Bitcoin and ethereum surged more than 30% in the past month, according to Messari, as the industry’s market value settles above $1 trillion.
“We might be getting six more weeks of winter, but it doesn’t seem like we will be seeing an ice age in crypto,” Edward Moya, senior market analyst for market maker Oanda, said in a note, referring to the latest Groundhog Day forecast.
He added: “January was a robust month for crypto and the [Federal Open Market Committee rate] decision helped keep all risky assets going higher.”