The jump comes less than a day after MicroStrategy revealed in its second-quarter earnings report that Michael Saylor would step down as chief executive on August 8. Michael Saylor will instead focus on business operations. “The Bitcoin Acquisition Strategy and Related Bitcoin Defense Initiatives as executive chairman, while Phong Le will take over Saylor’s current role.
MicroStrategy revealed in the report that it made $122.1 million in revenue, while its net losses topped $1 billion. Most of that came from the $917.8 million in impairment charges incurred due to bitcoin’s steep decline in value during the year.
Coinbase’s COIN also gained 10% on Wednesday, trading at around $74.57. The jump comes as the largest US cryptocurrency exchange has faced various crises lately, including a battle with the SEC, allegations of insider trading, mass layoffs and the resounding failure of its place. of NFT market. Coinbase has yet to release its second-quarter earnings report, but it did reveal a net loss of $430 million in the first quarter.
As MicroStrategy and Coinbase are largely dependent on the success of bitcoin and the cryptocurrency space, their stocks tend to move in tandem with the broader crypto market. According to data from CoinGecko, the global cryptocurrency market capitalization gained 2.7% on Wednesday, which may contribute to the rise in value of MicroStrategy and Coinbase.
Still, with crypto sentiment weakening after a months-long bloodletting, MicroStrategy and Coinbase still have some way to go to regain their highs. MicroStrategy hit $859 when bitcoin surged to $69,000 in November 2021, meaning it’s currently around 64% off its peak. Coinbase has been in even worse shape, down around 78% from when it hit $342 when it debuted on the Nasdaq in April 2021.