MicroStrategy shares rally as Saylor pulls out

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MicroStrategy shares rally as Saylor pulls out

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Coinbase stock also jumped double digits today.

MicroStrategy soars on Q2 report

MicroStrategy and Coinbase investors finally have something to celebrate.

MicroStrategy’s MSTR shares soared minutes after US markets opened on Wednesday, rising from around $282.37 to $320.81. MSTR has since cooled to around $310.01. The jump comes less than a day after MicroStrategy revealed in its second quarter earnings report that Michael Saylor would be resign as the company’s chief executive on August 8. By The reportInstead, Saylor will focus on “Bitcoin Acquisition Strategy and Bitcoin-Related Advocacy Initiatives” as Executive Chairman, while Phong Le will assume Saylor’s current role.

MicroStrategy revealed in the report that it had revenue of $122.1 million, while its net losses exceeded $1 billion. Most of that came from $917.8 million in impairment charges incurred due to Bitcoin’s steep decline in value over the year.

Coinbase’s COIN also gained double digits on Wednesday, trading at around $74.57 at press time. The jump comes despite the largest US cryptocurrency exchange struggling with various crises lately, including a battle with the SEC, insider trading allegations, collective redundanciesand the resounding failure of its NFT market. Coinbase has yet to release its second-quarter earnings report, but it did reveal that it posted a net loss of $430 million in the first quarter as the crypto winter intensified.

As MicroStrategy and Coinbase are largely dependent on the success of Bitcoin and the cryptocurrency space, their actions tend to work in tandem with the broader crypto market. According CoinGecko Datathe global cryptocurrency market capitalization gained 2.7% on Wednesday, which could help boost the value of MSTR and COIN.

Still, with crypto sentiment waning after months of hemorrhaging, MicroStrategy and Coinbase still have some way to go to regain their highs. MSTR surged above $859 as Bitcoin surged to $69,000 in Nov 2021, meaning it is currently around 64% below its peak. COIN did even worse, around 78% lower than it hit $342 when it debuted on the Nasdaq in April 2021.

Disclosure: At the time of writing this article, the author of this article owned ETH and several other cryptocurrencies.

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