Bitcoin Boosts Strategy and Coinbase Shares as Market Rebounds
Shares of Strategy, Inc. (MSTR) and Coinbase Global (COIN) experienced significant gains on Wednesday, marking a notable recovery for these Bitcoin-linked stocks after a prolonged period of losses. The surge coincided with Bitcoin surpassing $73,000, reaching a one-month high after six consecutive weekly declines and five months of overall downturn.
Market Performance
Strategy’s stock jumped 12.3% to $148.94, while Coinbase rose 16.2% to $211.84, continuing its recent upward trend. Robinhood Markets (HOOD) also saw gains, increasing by 8.5% to $82.50. Other crypto-related stocks followed suit, with Galaxy Digital Holdings (GLXY) climbing 15% to $23.78 and Marathon Digital (MARA) rising 6.76% to $9.24.
Strategy’s Bitcoin Holdings
Earlier this week, Strategy purchased an additional 3,015 Bitcoin for approximately $204 million, bringing its total Bitcoin holdings to 720,737 BTC. The company’s average purchase price for Bitcoin is $75,985 per coin, with the current Bitcoin price nearing that average.
Trump Administration and Cryptocurrency
The market activity followed a private meeting between President Donald Trump and Coinbase CEO Brian Armstrong. Shortly after the meeting, Trump criticized banks for potentially hindering progress on cryptocurrency legislation, echoing Coinbase’s position. On his social media platform, Trump urged banks to “build a good deal with the Crypto Industry” and deemed it unacceptable for the GENIUS Act to be undermined by banking interests.
Stablecoin Debate
The dispute centers on whether cryptocurrency exchanges should be allowed to offer rewards programs with annual percentage yields (APYs) on stablecoins. Banks argue that such yields could draw deposits away from traditional accounts, impacting lending operations, and are advocating for a ban in pending Senate legislation. Coinbase and other digital asset firms oppose these restrictions, asserting they would stifle innovation and competition. Senate markup of the legislation has been postponed, leaving the bill stalled.
Current Bitcoin Price
As of writing, Bitcoin is trading above $73,000, with an intraday high of $73,800, representing an approximately 8% increase for the day.