With Bitcoin's Rise, Coinbase And Other Crypto Stocks Are Surging

The bitcoin mining sector is also enjoying a strong rally on Tuesday

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Bitcoin prices and the value of other digital assets rose sharply in Tuesday morning trading as shares of names associated with cryptocurrency rallied sharply.

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During morning trading, Coinbase Global Inc. COIN, +6.66% shares rose 7.8% while earlier in the session they had risen as much as 11.8%.

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Several bitcoin mining companies, including Marathon Digital Holdings Inc. MARA, a 9.48% stake, and Riot Platforms Inc. RIOT, a 13.06% stake, both gained more than 10% in value today. Hut 8 Mining Corp. shares rose 14% to 14.70%.

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In addition to the rallies in crypto-related stocks, Bitcoin BTCUSD, 6.91% was up more than 7% early Tuesday morning, while Ethereum ETHUSD, 5.34% was up more than 4% as well.

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“The recent rally could have legs, with [Bitcoin] spiking in anticipation of an imminent Fed pivot, but we continue to recommend a conservative approach to this sector," DA Davidson analyst Chris Brendler wrote Tuesday of the bitcoin-mining names. There is a preference among Brendler for "higher-quality, low-cost miners with strong balance sheets" and he rates shares of Riot and Marathon as buys.

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As he pointed out, the mining stocks have had a volatile start in 2023, with many climbing to new highs in the early part of the year before they sold off over the last month before a massive, Fed-induced short-covering yesterday brought them back to positive territory.

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However, he cautioned, "the sudden, unexpected demises of Silvergate, Silicon Valley Bank, and Signature have – and are expected to continue to – have a ripple effect throughout the crypto market, and the level of contagion isn't easy to predict at this stage."

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