MicroStrategy and Marathon Digital Lead Bounce for Crypto-Related Stocks
The government's weekend backstop of depositors at failed lenders Silicon Valley Bank and Signature Bank sent bitcoin above $22,000.
Mar 13, 2023 at 12:46 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/RNGSP6TYXNDRPPGM5G76DC7AXQ.jpg)
Crypto-related stocks gained early Monday. (Gerd Altmann/Pixabay)
Crypto-related stocks are mostly posting modest gains alongside the price of bitcoin (BTC) in premarket action on Monday following government moves on Sunday to stem what was shaping up to be a banking crisis.
The price of bitcoin had plunged to below $20,000 late last week following the failures of crypto-focused Silvergate Bank and Silicon Valley Bank, a bank with many ties to the crypto industry. Silvergate was a relatively small lender, but the collapse of Silicon Valley Bank – the second-largest bank failure in U.S. history – had many going into the weekend worried about systemic contagion.
A number of government agencies Sunday evening teamed up to protect all depositors at Silicon Valley Bank. At the same time, New York regulators shut down Signature Bank (SBNY) as the federal government promised to protect all depositors. The actions sent U.S. stock index futures higher by more than 1%, though that rally lost steam shortly before the open. At press time, only Nasdaq 100 futures remain in the green, up 0.2%.
On Sunday, bitcoin bounced as high as $22,600. It was recently trading at $22,100. Among crypto-related stock movers Monday morning, MicroStrategy (MSTR), a software company that holds a large amount of bitcoin, rose 5.6%, and bitcoin miners Marathon Digital (MARA) and Riot Platforms (RIOT) were up 5.5% and 2.6%, respectively. Crypto exchange Coinbase (COIN) was down 0.6%.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/s3.amazonaws.com/arc-authors/coindesk/86c43cde-6640-4a7c-98af-5e25273f0e17.png)
Stephen Alpher is CoinDesk's co-regional news chief, Americas. He holds BTC above CoinDesk’s disclosure threshold of $1,000.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.