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Bitcoin-Linked Stocks Coinbase And MicroStrategy Are Rising Monday: What's Going On?
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Bitcoin-Linked Stocks Coinbase And MicroStrategy Are Rising Monday: What's Going On?
Mar 25, 2024 7:02 AM

Shares of Coinbase Global Inc ( COIN ) and MicroStrategy Inc ( MSTR ) are moving higher Monday amid strength in the price of Bitcoin.

What To Know: Bitcoin surged on the back of increased demand following the approval of spot bitcoin ETFs in January, but the ETFs experienced heavy outflows last week and several crypto-related stocks sold off before bouncing back following dovish comments from the Federal Reserve. 

Bitcoin continued to trade higher over the weekend and was up approximately 2% over a 24-hour period, hovering around $66,950 at last check.

As a crypto exchange, Coinbase benefits from volatility in crypto as increased price movement often leads to more trading activity on the platform. Coinbase reported strong fourth-quarter financial results last month as transaction revenues jumped 83% quarter-over-quarter. The company is not due to report earnings again until early May. 

MicroStrategy ( MSTR ) is a business intelligence, mobile software and cloud-based services company, focused on accumulating bitcoin. As of March 10, MicroStrategy ( MSTR ) said it held an aggregate of approximately 205,000 bitcoins at an average purchase price of approximately $33,706 per coin.

See Also: ‘Rich Dad, Poor Dad’ Author Robert Kiyosaki Says He’s Buying 10 Bitcoin Before April Halving, Sees King Crypto Rallying To This Level By September

Should I Sell My COIN Or MSTR Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Coinbase have increased by 319.73% in the past year. An investor who bought shares of Coinbase at the beginning of the year would make a profit of $105.62 per share if they sold it today. The stock has risen 35.35% over the past month, meaning an investor who bought shares on Feb. 1 would see a capital gain of $133.28. Coinbase shares have an all-time high of $357.39, representing 36.15% upside from current levels.

Shares of MicroStrategy ( MSTR ) have gained 569.15% year to date. This compares to the average annual return of 34.86%, meaning the stock has outperformed its historical averages.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. MicroStrategy ( MSTR ) stock currently has an RSI of 47.18, indicating neutral conditions. Coinbase stock currently has an RSI of 55.6, indicating neutral conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

COIN, MSTR Price Action: At publication time, Coinbase shares were up 2.25% at $261.28 and MicroStrategy ( MSTR ) shares were up 5.04% at $1,599.80, per Benzinga Pro.

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