Coinbase (COIN) surges as Bitcoin (BTC) price tops $30,000
Shares of cryptocurrency-focused stocks are trading higher on Tuesday, April 11, after Bitcoin (BTC) surged to the top of the $30,000 handle for the first time since last June.
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Cryptocurrency exchange Coinbase Global (NASDAQ: COIN ) traded over 8% higher Tuesday to hit a 3-week high after shares plunged on the Wells Notice.
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Back in March, the US Securities and Exchange Commission (SEC) informed the company that it made a ‘preliminary decision’ to recommend that the SEC file an enforcement action against the company alleging violations of federal securities law.
The Wells notice is usually a precursor to an enforcement action. Coinbase CEO Brian Armstrong reminded investors that the SEC was thoroughly reviewing his business in 2021 when the company went public via a massive initial public offering (IPO).
“Our S1 clearly explained our asset listing process and included 57 references to stakes. Coinbase runs a rigorous asset review process and has rejected more than 90% of assets that have applied to be listed on the platform,” Armstrong said in a tweet.
As a result, COIN shares fell 14% and were trading within a tight range before Bitcoin’s break to the upside enabled a relief rally. COIN stock is up ~87% year-to-date due to the improved risk sentiment surrounding risk assets and cryptocurrencies in general.
Digital assets have outperformed recently as some investors sought refuge in Bitcoin amid concerns about a broader collapse in the banking industry.
Elsewhere, crypto miners Riot Platforms (NASDAQ: RIOT ) and Marathon Digital (NASDAQ: MARA ) are also trading higher.
Bitcoin infrastructure developer CleanSpark (NASDAQ: CLSK ) is trading over 11% higher after the company said it had purchased 45,000 Antminer S19 XP bitcoin miners from Bitmain for nearly $145 million. The agreement will push the company’s total machines to around 15.9 EH/s.
As of 16:00 GMT Tuesday, Bitcoin is up 1.4%, while Ethereum is trading flat on the day after approaching $2,000 for the first time since August 2022.
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