A couple of cryptocurrency-related stocks soar
Following the approval of stablecoin legislation in the Senate, Circle and Coinbase celebrated as if it were 1999 (and they were dot-com stocks) with each of them rising double digits in hopes that cryptocurrencies would become commonplace.
Earlier in the afternoon, CIRCLE reached $180, marking a new all-time high for the stock. It later rose, closing the session just below $200, with a 33% increase on the day. COIN shares, for their part, rose 16% to $295.
Circle is the issuer of USDC, the second-largest stablecoin in the industry, pegged to the US dollar, after Tether's USDT. The latter has a market capitalization close to $155 billion, while USDC is approaching one-third of that size. However, Coinbase is aligned with USDC, the exchange's stablecoin, which benefits its results, as Coinbase participates in the revenue derived from the interest generated by the reserves of USDC backing the circulating USDC.
For its part, Coinbase reported $217 million in earnings in the first quarter thanks to the revenue-sharing agreement, compared to $197 million in the first quarter of 2024.
