Crypto Stocks Rebound as Bitcoin Stabilizes After 14% Drop

MicroStrategy (MSTR) led the charge, with its stock surging 18% to $126.59 by the close, after gaining as much as 22% intraday. This rally occurred despite the Virginia-based software company’s core treasury asset—713,502 Bitcoin—being 9.5% underwater. The company acquired its BTC at an average price of $76,047, a figure now above Bitcoin’s stabilized trading price of around $69,500. The sharp market move on Thursday, which saw Bitcoin briefly touch $60,225, crystallized a massive $12.4 billion loss for MicroStrategy in the fourth quarter.

Executive Chairman Michael Saylor framed the position as a “digital fortress anchored by 713,502 Bitcoin,” emphasizing the company’s “indefinite Bitcoin horizon.” However, analysts have tempered their near-term price expectations. Canaccord Genuity’s Joseph Vafi slashed his target from $474 to $185, a 60% cut, while BTIG’s Andrew Harte reduced his forecast from $630 to $250. Crucially, both analysts maintained their buy ratings, signaling a belief in significant long-term upside despite the current paper losses and reduced targets.

Ethereum-focused BitMine Immersion Technologies (BMNR) saw its shares jump 13.9% to $19.83. The company, led by Tom Lee, commands a treasury of 4,285,125 ETH, worth approximately $8.7 billion, which also sits on an unrealized loss of $7.5 billion. Unlike pure Bitcoin holders, BitMine’s strategy leverages the Ethereum network’s proof-of-stake mechanism. The company has staked $6.7 billion worth of its ETH holdings.

This operational pivot is central to its investment thesis. Lee stated last week that once the company fully stakes its ETH through partners like MAVAN, it is projected to generate over $1 million per day in staking rewards. This prospective revenue stream, decoupled from pure ETH price appreciation, provides a fundamental earnings narrative that resonated with investors during the market rebound, distinguishing BitMine from Bitcoin-centric treasury plays.

Cryptocurrency exchange Coinbase (COIN) gained 9.9% to $160.60, demonstrating its role as a direct beneficiary of market turbulence. Chief Financial Officer Alesia Haas has previously explained that volatility drives higher trading volumes, which in turn “meaningfully” boosts transaction revenue. She highlighted this dynamic in February 2024, following the U.S. approval of spot Bitcoin ETFs, noting strong reengagement from both retail and advanced traders.

The rally extended across the crypto equity spectrum. Bitcoin miners Marathon Digital Holdings (MARA) and CleanSpark (CLSK) soared more than 19% to $8.06 and $9.87, respectively, with peers like Terawulf and Riot Platforms (RIOT) posting similar gains. Institutional firm Galaxy Digital (GLXY) rose over 17% to nearly $20, recovering from a sell-off earlier in the week triggered by an earnings loss. This broad-based surge underscores the sector’s high correlation to Bitcoin’s price movements and the investor perception that market churn ultimately fuels revenue for key infrastructure players.