Cryptocurrency prices are rallying after strong third-quarter financial results from leading digital asset firms Coinbase Global (COIN) and Strategy (MSTR).
Bitcoin (BTC), the biggest cryptocurrency by market capitalization, is up 3% and trading at $110,000 U.S. on Oct. 31.
Other cryptocurrencies, including Ethereum (ETH), XRP (XRP), and Dogecoin (DOGE), are each up as much as 5% following strong prints from Coinbase and Strategy.
The better-than-expected earnings appear to have given digital assets a much-needed shot in the arm after they slumped throughout October as investors grew cautious of riskier trades.
Cryptocurrency exchange Coinbase reported earnings per share (EPS) of $1.50 U.S., which was ahead of the $1.10 U.S. forecast on Wall Street.
Revenue in the third quarter increased 55% year-over-year to $1.87 billion U.S., which was ahead of analysts’ consensus estimate of $1.80 billion U.S.
Management at Coinbase said they benefitted from market volatility, which boosted user activity and trading fees on its platform.
For its part, Strategy, formerly known as MicroStrategy, announced EPS of $8.42 U.S., which topped Wall Street estimates of $7.90 U.S.
Revenue in the quarter totaled $128.7 million U.S., which was above consensus expectations of $116.35 million U.S. The company’s sales were up 11% from a year earlier.
Strategy, which is the world’s biggest corporate holder of BTC, attributed the strong results to gains in the price of Bitcoin between July and September of this year.
The former software company now holds 640,808 Bitcoin valued at $70.9 billion U.S. based on the current price. Strategy said its average cost per BTC is $74,032 U.S.
Bitcoin has now risen 18% on the year.
