What happened
Shares of some Bitcoin (BTC 4.50%) stocks were up by double-digit percentages Monday morning. The original cryptocurrency was up more than 13% as of noon EDT today from where it traded on Friday, and various Bitcoin stocks and ETFs adjusted higher as well.
Here’s how some U.S. listed stocks were faring Monday morning:
- Coinbase Global (COIN 4.30%) was up 7.5%.
- MicroStrategy (MSTR 4.41%) was up 19%.
- Riot Blockchain (RIOT 7.62%) was up 19%.
- Grayscale Bitcoin Trust (GBTC 3.33%) was up 18%.
Inspecting a cryptocurrency mining rig. Image source: Getty Images.
So what
A confluence of factors came together to push Bitcoin and companies reliant on the crypto’s fate higher. Last week, Tesla (TSLA 3.55%) CEO Elon Musk said the electric vehicle maker might start accepting Bitcoin as a form of payment again. Twitter (TWTR +0.00%) CEO Jack Dorsey said the social network is also looking to integrate the crypto into its operations. Dorsey’s other company, Square (SQ 1.07%), is already a prominent pioneer of the Bitcoin movement.
Perhaps the biggest news, though, was a hint from e-commerce giant Amazon (AMZN 1.97%) that it might be about to enter the crypto space as well. Amazon hasn’t officially stated this, but it did post a job listing for a “Digital Currency and Blockchain Product Lead.” The listing spurred speculation that cryptocurrencies might soon be accepted as a form of payment at the leading e-commerce business.
Now what
The cryptocurrency market can be incredibly volatile, and just a few bullish indicators can be enough to spur a new run higher. Bitcoin is still some 40% below its all-time high of nearly $65,000, notched back in April, but the move higher over the weekend made up significant ground.
Crypto brokers like Coinbase get a boost from crypto prices rising, but that’s not the only factor at work. Since they earn fees from trading of assets like Bitcoin, the expanding adoption of cryptocurrencies and blockchain technology benefit them if the volume of trades increases as well. MicroStrategy and Riot Blockchain are notable Bitcoin acquirers with billions of dollars' worth on their balance sheets, so a rise in Bitcoin’s value increases the value of the companies as well. If Bitcoin continues to rally, expect these stocks to ride its coattails higher, too.
