Strategy & Coinbase Shares Soar 12% & 10% Amid Bitcoin Short Squeeze

Crypto-linked equities are surging ahead of Bitcoin's price gains, with Strategy shares climbing 12% to $148.55 and Coinbase Global stock jumping 10% to $192.43 in morning trading.

The rally is being driven by a short squeeze, with traders liquidating their short positions as Bitcoin broke past its resistance level. This has pushed the price of Bitcoin higher, with it currently trading at $80,888.81, up 5.5% over the past 24 hours.

Strategy's shares are particularly sensitive to Bitcoin's movements due to its exposure to the cryptocurrency on its balance sheet. Coinbase, on the other hand, is benefiting from a regulatory tailwind, with the SEC granting a five-year exemption allowing U.S. trading venues to offer tokenized stocks.