Justin Sullivan | Getty Images
Cryptocurrency-related stocks popped in premarket trading Thursday after the price of bitcoin soared above $100,000 for the first time overnight.
MicroStrategy surged 6.1%, while Robinhood Markets and Coinbase Global climbed 4.3% and 3.5% each. Mara Holdings and Riot Platforms added around 6% and 4%, respectively.
MicroStrategy has become a proxy for bitcoin, as the software company has been buying the digital currency in recent years — driving the stock’s value higher. The stock is up more than 2,700% since 2020, when the company first began buying bitcoin.
MSTR since 2020
Year to date, MicroStrategy has soared 542.8% as of Wednesday’s close. Robinhood has rallied more than 200%, while Coinbase has nearly doubled. Mara Holdings has lagged the group with a 10.5% gain.
Investors became bullish on bitcoin after President-elect Donald Trump won the Nov. 5 election on the expectations of a more relaxed regulatory environment.
Traders have also poured into leveraged MicroStrategy ETFs, according to a research note from JPMorgan on Wednesday. A leveraged exchange-traded fund can amplify the potential gains of an underlying index by holding debt; as a result, it is also viewed as a higher-risk investment fund.
“The inflows into leveraged MicroStrategy ETFs accounted for almost a third of the record high $11bn inflow into overall crypto funds in November,” strategist Nikolaos Panigirtzoglou said in the note.