MicroStrategy, Coinbase, Robinhood Stocks Lifted by Bitcoin Rally. What's Next. — Barrons.com

By Elsa Ohlen

Crypto-linked stocks including MicroStrategy, Coinbase Global, and Robinhood popped in early trading Monday as Bitcoin continued its surge over the weekend.

Shares of Bitcoin-buyer MicroStrategy, which does business as Strategy, were up 2.8% to $446.83in premarket trading. Crypto trading platforms Coinbase and Robinhood rose 1.6% and 2.5%, respectively. Futures tracking the S&P 500 index were down 0.4%.

Bitcoin, the world's largest cryptocurrency, was trading at a record high of more than $121,000 early Monday.

Like cryptocurrencies, crypto-linked stocks are benefiting from recent macroeconomic tailwinds, such as expectations that the U.S. Federal Reserve will cut interest rates later this year.

U.S. lawmakers are also ramping up efforts to provide structure to the crypto industry this week.

The White House announced earlier this month that the week of July 14 would be "Crypto Week" and reiterated intentions to make the U.S. the cryptocurrency capital of the world. Politicians will consider three key pieces of legislation in the coming days: The CLARITY Act, the GENIUS Act and the Anti-CBDC Surveillance State Act.

However, there remain questions about how sustainable the current rally is — and both crypto prices and the shares of companies affected by them tend to be volatile.

Strategy, the world's largest corporate holder of Bitcoin raised one red flag — last week saying that during the past seven days, it didn't make any Bitcoin purchases. That hasn't happened since the first week of April when President Donald Trump announced sweeping global tariffs, sending global markets sharply down.

The Michael Saylor-led company typically publishes its Bitcoin purchases on Monday mornings for the previous week. By July 7, its total holdings stood at 597,325 tokens, unchanged from Monday June 30.

As a leveraged bet on Bitcoin, an extended pause in purchases could have implications for Strategy stock and its backers.

It is also possible that Tuesday's June inflation report will be hotter than expected, which may hamper the crypto rally by lowering expectations of an imminent rate cut.

Write to Elsa Ohlen at elsa.ohlen@barrons.com

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