MicroStrategy leads crypto stocks higher after bitcoin tops $100,000 for the first time
Crypto-linked stocks jumped after bitcoin prices reached $100,000 for the first time ever.
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.
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.
Investors 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.