Circle and Coinbase Stocks Surge 800% and 30% on GENIUS Act Approval

Circle and Coinbase have seen significant gains following the Senate's vote in favor of the GENIUS Act, which aims to regulate stablecoins. Circle's shares, trading on the New York Stock Exchange under the ticker CRCL, surged from $156.36 to a peak of nearly $249, marking an eightfold increase from its initial public offering price of $31. This surge was driven by positive analyst ratings and the potential for the stablecoin market to reach $2 trillion, according to Seaport Research Partners senior analyst Jeff Cantwell. Coinbase, which co-founded USDC with Circle, also benefited from the legislation, with its stock rising by about 30% this week.

Meanwhile, the Bitcoin treasury model, popularized by Strategy, is facing challenges. Semler Scientific, a healthcare firm that holds Bitcoin as part of its treasury, saw its multiple-to-net asset value (mNAV) fall to 1.07, indicating a thin premium over its Bitcoin holdings. Although the mNAV has since improved slightly, the company's stock remains well below its year-to-date high. Financial services firm Fold is also raising capital to build a Bitcoin treasury, but its shares have slipped since the announcement. In contrast, companies like Tesla and Block, Inc. have seen significant unrealized gains from their Bitcoin holdings, with an average cost basis well below current market prices.

In other news, Tron is pursuing a Nasdaq listing through a reverse merger with SRM Entertainment, a deal valued at $210 million. Bitcoin miner Bitdeer's share price fell after upsizing its capital raise to $330 million, with the funds primarily used for data center expansion and paying off call options. Additionally, crypto prime broker FalconX is exploring IPO options, with early talks already underway with investment bankers and other experts.