Bitcoin-Linked Stocks Coinbase And MicroStrategy Are Rising Monday: What's Going On?

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 is a business intelligence, mobile software and cloud-based services company, focused on accumulating bitcoin. As of March 10, MicroStrategy 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 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 stock currently has an RSI of 47.18, indicating neutral conditions. Coinbase stock currently has an RSI of 55.6, indicating neutral conditions.

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

Photo: 15958319 from Pixabay.