Bitcoin Rally Sparks Pre-Market Surge in Crypto Stocks

Pre-market trading witnessed a surge in cryptocurrency-related stocks as Bitcoin exceeded $46,000 for the first time in nearly a month, marking a weekly gain of almost 10%. Notable companies in the crypto sector, including COIN, MSTR, CLSK, RIOT, and MARA, all experienced positive momentum during pre-market hours on Friday.

CleanSpark (CLSK), a Bitcoin mining firm, led the upward trend with an impressive nearly 20% increase by 10:15 UTC. The surge was attributed, in part, to the company’s favorable Q3 2023 results announced on Thursday, revealing a profit of $25.9 million compared to a $29 million loss the previous year.

Riot Platforms (RIOT) and Marathon Digital Holdings (MARA) also witnessed gains of 7% and 8%, respectively. Bernstein, a brokerage firm, recommended mining stocks as a strategic entry point for exposure to Bitcoin, especially in anticipation of the upcoming halving event, where miners’ rewards for new coins are halved. In a research report on Thursday, CLSK and RIOT were highlighted as preferred stocks by Bernstein.

Cryptocurrency exchange Coinbase (COIN) and software company MicroStrategy (MSTR), known for holding approximately 190,000 BTC on its balance sheet, both recorded gains in the range of 5%. Additionally, BlackRock’s Bitcoin exchange-traded fund (IBIT), the first of the new spot BTC ETFs to reach $2 billion in assets, saw an increase of around 2.75%.