Disclaimer: The analyst who wrote this piece owns shares of MicroStrategy (MSTR), Riot Platforms (RIOT), IREN, Semler Scientific (SMLR) and Marathon Digital Holdings (MARA).
U.S. crypto company shares surged in pre-market trading after bitcoin (BTC) jumped above $75,000 on indications Donald Trump was on track to win the U.S. presidential election, an outcome confirmed when he secured more than the 270 electoral college votes needed for victory.
MicroStrategy (MSTR), the largest corporate holder of bitcoin, added 12%, approaching $255 and is just a few percentage points away from a record high that would represent a 280% climb this year. Crypto exchange Coinbase also gained 12% as did crypto miner Riot Platforms (RIOT). Other miners also rallied, with Marathon Digital Holdings (MARA) rising 11% and IREN (IREN) 12%.
Other notable mentions include Tokyo-based Metaplanet (3350), which is mimicking Microstrategy's policy of buying bitcoin, and added 24%. The investment adviser has rocketed more than 1,100% year-to date. CEO Simon Gerovich said the company saw a record trading volume of 11.63 billion yen ($76 million). This comes after Semler Scientific (SMLR), another bitcoin investor, saw a 30% increase in its share price yesterday.
Tesla, whose CEO Elon Musk supported Trump during the election campaign and has voiced his support for cryptocurrencies, advanced 15%.
With the uncertainty surrounding the election — which showed the candidates closely matched in opinion polls — the prospect of favorable regulation for crypto industry under Trump could be a new catalyst for a bull run, said André Dragosch, head of research in Europe at Bitwise.
“A more pro-crypto stance among U.S. regulators will likely allow a more diverse set of investment opportunities such as ETFs," Dragosch told CoinDesk. "There are still several spot crypto ETFs waiting for the SEC’s approval, including spot ETFs on Solana and XRP. Cryptoasset service providers will be freer to operate and will likely face less pressure by regulators, i.e. the so-called 'Operation Chokepoint 2.0' will likely end.”
Bitcoin has generally performed very well after past U.S. elections, regardless of the outcome, he said.
"That being said, a Trump win is bound to accelerate the coming bull run in bitcoin and cryptoassets. The latest U.S. election results imply that the political sentiment has significantly shifted towards a pro-crypto stance in the U.S. and will likely accelerate the mainstream adoption of cryptoassets”.
