Bitcoin Surges as Public Companies Ramp Up Cryptocurrency Acquisitions
By Jesse Coghlan | Cointelegraph
In a notable development for the cryptocurrency market, both Bitcoin (BTC) and various crypto-linked U.S. stocks experienced a significant uptick on Monday, propelled by a wave of acquisitions from publicly traded companies investing in Bitcoin. The overall market sentiment appears to be shifting positively as corporate interest in the cryptocurrency surges.
Public Companies Boost Bitcoin Holdings
On June 10, major U.S. crypto miners and other firms marked gains in their stock prices. Companies like Circle Internet Group (CRCL), which recently made its debut on the Nasdaq as a stablecoin issuer, saw its share price rise by an impressive 7%, eventually reaching $117.79 after an additional 2.2% gain in after-hours trading. Core Scientific Inc. (CORZ), another leading crypto miner, closed the day with a 4.27% increase and continued to see a bump of 0.87% after the market closed. The risers did not stop there; CleanSpark Inc. (CLSK) and Marathon Digital Holdings Inc. (MARA) both gained more than 3% during regular hours and topped off their success with an additional 1% increase post-market.
Riot Platforms Inc. (RIOT) was also part of the upward trend, securing a 2.74% gain for the day, followed by a 1.2% rise in after-hours trading. These increases come in line with Bitcoin’s own rally, which had surged by approximately 4% over the day, pushing the cryptocurrency close to its previous high of $112,000 reached on May 22. Early on Monday in Asia, Bitcoin even breached the $110,000 mark, indicating growing optimism as concerns surrounding trade talks between the U.S. and China began to ease.
MicroStrategy Continues Its Bitcoin Investments
MicroStrategy Inc. (MSTR), a well-known player in the Bitcoin market, is persistently adding to its Bitcoin holdings, recording a 4.71% gain on its share price before an additional increase of over 1%, bringing it to $396.61. The continued investment by MicroStrategy demonstrates a growing trend among public companies to bolster their balance sheets with Bitcoin to attract investors.
Rival Platforms Experience Mixed Results
In contrast to the overall market trend, trading platform Robinhood Markets Inc. (HOOD) found itself on the negative side, dipping nearly 2% to $73.40 after the S&P Dow Jones Indices opted not to include the company in the S&P 500 index during its quarterly rebalancing. This decision sparked disappointment as analysts had anticipated a potential inclusion would boost Robinhood’s stock. However, it managed to claw back slightly with an after-hours increase of under 0.8%.
Rival trading platform eToro Group Ltd. (ETOR), which went public just weeks ago, displayed a starkly different performance, seeing shares soar over 10.5% and climbing another 2.4% in after-hours trading to reach $77.79. Meanwhile, crypto exchange Coinbase Global Inc. (COIN) reported a more modest 2% gain, ending the trading day at $256.63. Corporate Bitcoin Adoption Grows
The rally witnessed in Bitcoin’s value this year has prompted numerous public firms to enter the cryptocurrency market, aiming to enhance their valuation and appeal to investors. Recently, BitMine Immersion Technologies, Inc. (BMNR), a company specializing in Bitcoin mining equipment rental, announced the acquisition of 100 BTC to hold in reserve following a Wednesday share offering targeting an $18 million raise. Despite the positive news, BitMine’s stock closed Monday down nearly 8.7% but rebounded a bit with a 5.2% after-hours increase to $7.25. Furthermore, KULR Technology Group, Inc. (KULR) experienced a 4.2% rise following its announcement to acquire an additional $13 million in Bitcoin, which brings its total holdings to 920 BTC with an average purchase price of $98,760 per coin.
Conclusion
The momentum seen in Bitcoin’s price and the parallel rise in crypto-related stocks signifies a broader acceptance and strategic investment approach by public companies within the cryptocurrency sector. As major market participants begin to view Bitcoin as a viable asset for treasury management, analysts predict continued growth and market interest in the coming months.
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