Crypto Stocks Surge 4% as Firms Add Bitcoin to Treasuries

US crypto-linked stocks and Bitcoin experienced a significant rise on Monday, closing the trading day with gains as more publicly traded firms announced plans to add Bitcoin to their treasuries. The country’s four biggest crypto miners and several major crypto firms all closed with slight gains, extending their upward trend after-hours.

Circle Internet Group, a stablecoin issuer, saw its shares jump by 7% during the day, with an additional 2.2% rise after-hours to $117.79. Core Scientific Inc., a crypto miner, closed up by 4.27% and saw a 0.87% bump after the bell. Its rivals, CleanSpark Inc. and MARA Holdings Inc., both climbed over 3% and jumped another 1% after-hours. Riot Platforms Inc. gained 2.74% with a 1.2% after-hours bump.

These gains coincided with Bitcoin’s 4% climb over the last day to $110,150, approaching its May 22 peak of $112,000. Market jitters subsided amid trade talks between the US and China. Bitcoin broke through $110,000 early on Monday’s Asia trading session.

MicroStrategy Inc., a prominent Bitcoin-buying giant, gained 4.71% before bumping more than 1% to $396.61. In contrast, Robinhood Markets Inc., a crypto and stock trading platform, was the exception, sinking by nearly 2% to $73.40 after S&P Dow Jones Indices did not change the S&P 500’s membership on Friday. The market had speculated that Robinhood would be added to the index, which typically boosts share prices for those included.

Rival trading platform eToro Group Ltd. surged over 10.5% and continued to rise 2.4% after hours to $77.79, while crypto exchange Coinbase Global Inc. had a modest 2% gain to $256.63.

Bitcoin’s rally this year has sparked a wave of public firms buying up the cryptocurrency in the hopes of boosting share prices. The latest company to join the trend was BitMine Immersion Technologies, Inc., which announced on Monday that it bought 100 BTC for the first time to hold in reserve after a Wednesday share offering that targeted an $18 million raise.

Some companies that announced Bitcoin-buying plans have seen their share prices jump, but BitMine closed Monday trading down nearly 8.7%, which slightly rebounded by 5.2% after hours to $7.25. Meanwhile, shares in energy-management firm KULR Technology Group, Inc. rose 4.2% after it said on Monday that it bought another $13 million worth of Bitcoin, bringing its total holdings to 920 Bitcoin at an average purchase price of $98,760 per coin.

Strategy, a prominent Bitcoin treasury company, acquired an additional 1,045 BTC for approximately $110.2 million at an average price of $105,426. This purchase brings Strategy's total Bitcoin holdings to 582,000 BTC, valued at around $62.7 billion based on current prices. The company has been consistently buying Bitcoin, with this acquisition marking its fourth-smallest purchase of the year. Strategy has raised $112 million by issuing preferred stock to fund these acquisitions, with $66.4 million from Perpetual Strife Preferred Stock and $45.8 million from Perpetual Strike Preferred Stock.

The Blockchain Group is raising $342 million to add to its Bitcoin holdings. This move aligns with the growing trend of companies incorporating Bitcoin into their treasury strategies. The Blockchain Group's initiative is part of a broader trend where more firms are recognizing the value of Bitcoin as a store of value and a hedge against economic uncertainties.

Metaplanet, a technology company, announced a $5.4 billion plan to acquire 210,000 Bitcoin by 2027, aiming to become the second-largest Bitcoin holder among public companies. This ambitious plan has already led to a significant jump in Metaplanet's stock, reflecting investor confidence in the company's strategy. The energy-management firm KULR also plans to raise up to $300 million to fund additional Bitcoin purchases, working capital, and research and development.

The increasing number of firms adopting Bitcoin as part of their treasury strategies is a testament to the growing acceptance of cryptocurrencies in the corporate world. As more companies recognize the potential of Bitcoin, the demand for the cryptocurrency is likely to continue rising. This trend is driven by the belief that Bitcoin can serve as a reliable store of value and a hedge against inflation and economic uncertainties. The surge in Bitcoin and US crypto stocks is a clear indication of the market's positive response to these developments.