MicroStrategy (NASDAQ:MSTR) jumped as U.S. markets opened Wednesday, hours after the firm announced that Michael Saylor would be stepping down as its chief executive officer.
Coinbase’s stock has also surged double digits today.
MicroStrategy Soars on Q2 Report
MicroStrategy and Coinbase (NASDAQ:COIN) investors finally have something to celebrate.
MicroStrategy’s shares soared within minutes of U.S. markets opening Wednesday, rising from around $282.37 to $320.81. MSTR has since cooled off to around $310.01. The jump comes less than a day after MicroStrategy revealed in its second-quarter earnings report that Michael Saylor would be stepping down as the firm’s chief executive officer on Aug. 8. Per the report, Saylor will instead focus on the firm’s “Bitcoin acquisition strategy and related Bitcoin advocacy initiatives” as executive chairman, while Phong Le will take on Saylor’s current role.
MicroStrategy revealed in the report that it took in $122.1 million in revenue while its net losses topped $1 billion. The bulk of that was from $917.8 million worth of impairment charges it suffered due to Bitcoin’s sharp decline in value over the year.
COIN also gained double digits Wednesday, trading at about $74.57 at press time. The jump comes despite the biggest U.S. cryptocurrency exchange contending with various crises of late, including a battle with the SEC, allegations of insider trading, mass layoffs, and the resounding failure of its NFT marketplace. Coinbase is yet to release its earnings report for the second quarter, but it revealed it had recorded a net loss of $430 million in the first quarter as crypto winter intensified.
As MicroStrategy and Coinbase largely depend on the success of Bitcoin and the cryptocurrency space, their stocks tend to perform in tandem with the broader crypto market. According to CoinGecko data, the global cryptocurrency market capitalization gained 2.7% Wednesday, which may contribute to both MSTR and COIN rising value.
Still, with crypto sentiment waning after a months-long bleed, both MicroStrategy and Coinbase have some way to go to reclaim their highs. MSTR topped $859 as Bitcoin soared to $69,000 in November 2021, meaning it’s currently about 64% short of its high. COIN has fared even worse, around 78% down from when it hit $342 on its Nasdaq debut in April 2021.