Shares of Strategy, Inc. (MSTR) surged 12.3% to $148.94 on Wednesday, mirroring a broader rally in cryptocurrency-linked stocks as Bitcoin’s price climbed past $73,000, a one-month high.
The gains extended to other prominent players in the crypto space, with Coinbase Global (COIN) rising 16.2% to $211.84 and Robinhood Markets (HOOD) increasing by 8.5% to $82.50. Bitcoin mining and crypto services companies also saw significant advances; Galaxy Digital Holdings (GLXY) jumped 15% to $23.78, and Marathon Digital (MARA) rose 6.76% to $9.24.
The market upswing followed six consecutive weekly losses for Bitcoin and a five-month decline, a period marked by increased bearish bets from traders. The rebound appears to have been fueled by a covering of those short positions and a readjustment of portfolios, particularly after anxieties surrounding escalating conflict in Iran had contributed to the earlier downturn.
Strategy’s recent activity further underscored its commitment to Bitcoin. Earlier this week, the company purchased an additional 3,015 Bitcoin for approximately $204 million, bringing its total holdings to 720,737 BTC. These holdings were acquired at an average price of $75,985 per coin, a figure the current Bitcoin price is approaching.
The rally in crypto stocks coincided with a private meeting between Coinbase CEO Brian Armstrong and former President Donald Trump. Following the meeting, Trump criticized banks for potentially hindering progress on cryptocurrency legislation, a position aligned with Coinbase’s advocacy. On his social media platform, Trump stated that banks “need to develop a good deal with the Crypto Industry” and deemed it unacceptable that the recently passed GENIUS Act was “being threatened and undermined by the Banks.”
The dispute centers on the ability of crypto exchanges to offer rewards programs, specifically annual percentage yields (APYs) on stablecoins. Banks contend that these yields could draw deposits away from traditional banking institutions, impacting their lending capabilities, and are advocating for a ban through pending Senate legislation. Coinbase and other digital asset firms argue that such restrictions would stifle innovation and competition. Armstrong previously voiced opposition to amendments to the crypto bill that would limit stablecoin rewards, leading to a postponement of Senate markup and stalling the legislation.
The White House has reportedly attempted to mediate between banks and crypto firms, but a resolution remains elusive. As of this morning, Bitcoin is trading above $73,000, with an intraday high of $73,800, representing an approximately 8% increase on the day.
