Key facts
- MicroStrategy (MSTR) shares rose 11.95% to $103.58, reaching an intraday high of $106.90.
- Coinbase (COIN) climbed 9.05% to $159.47, with an intraday high of $165.74.
- Circle (CRCL) gained 9.44% to $78.50, and BitMine (BMNR) added 9.68% to $20.05.
- The rally coincided with Bitcoin's surge toward $70,000 and a market-wide short squeeze.
- MicroStrategy and Coinbase are among Wall Street's most shorted large-cap stocks.
- MicroStrategy holds 840,447 BTC, and BitMine holds 5.82 million ETH.
Crypto-linked stocks experienced a sharp one-day rally, with MicroStrategy (MSTR) leading the surge, up 11.95% to $103.58, and Coinbase (COIN) climbing 9.05% to $159.47. Stablecoin issuer Circle (CRCL) rose 9.44% to $78.50, and Ethereum treasury BitMine (BMNR) gained 9.68% to $20.05.
These stocks touched fresh intraday highs, with MSTR reaching $106.90, COIN $165.74, CRCL $81.22, and BMNR $20.90, before paring some gains. The rally tracked Bitcoin's short squeeze towards $70,000, which liquidated over a billion dollars in bearish crypto bets. The U.S. Treasury's announcement to double its long-bond buyback program also boosted risk assets.
MicroStrategy, which holds 840,447 BTC, and Coinbase, which earns fees from crypto trading volume, are among Wall Street's most shorted large-cap stocks. This means the current rally is also forcing equity short sellers to cover their positions. Circle issues the USDC stablecoin and earns yield on its reserves, while BitMine stockpiles and stakes Ethereum.
Despite Wednesday's spike, MicroStrategy, Coinbase, and BitMine remain significantly down for the year. Analysts are divided on whether this move signals a sustained uptrend or a short-covering pop within a longer downtrend. Future volume and Bitcoin's ability to hold the $70,284 resistance zone will be key indicators.