Ambitious Bitcoin expansion plan catapults MicroStrategy past Coinbase amid crypto market shifts.
MicroStrategy, a major Bitcoin-focused investment firm, has now surpassed Coinbase, the largest U.S. crypto exchange, in market capitalization.
As reported by Yahoo Finance, MicroStrategy (MSTR) is valued at over $50 billion, outpacing Coinbase (COIN), which stands at approximately $46.5 billion.
This shift reflects MicroStrategy's impressive stock performance, having surged about 400% over the past year to a 20-year high of around $250. By contrast, Coinbase, led by CEO Brian Armstrong, has seen a steadier increase of 40% amid rising competition in North America. Coinbase has lost some market share to fast-growing competitors like Crypto.com and experienced reduced trading activity following the introduction of spot Bitcoin ETFs.
This market change also aligns with recent third-quarter earnings reports. MicroStrategy announced a bold plan to raise $42 billion to purchase Bitcoin, while Coinbase proposed a $1 billion stock buyback. Some crypto analysts have suggested that Coinbase might have been better off investing in Bitcoin rather than repurchasing its shares.
Overall, MicroStrategy is now one of the top three publicly traded companies by market cap with significant Bitcoin holdings, mining operations, or acceptance, following only Tesla and PayPal.