Coinbase Global Inc (NASDAQ:COIN) moved over 5% higher in early trading on the back of a continued rally by Bitcoin to a two-year high on Tuesday.
Fuelled by the recent approval of spot Bitcoin exchange-traded funds (ETFs) and purchases by large investors, the cryptocurrency topped US$57,425 on Tuesday morning.
This meant Bitcoin had added over 10% in two sessions, spelling good news for cryptocurrency exchange platform Coinbase.
MicroStrategy is among large firms to have recently upped Bitcoin holdings, with the company unveiling a US$155 million purchase of around 3,000 coins on Monday.
Reddit, which is gearing up for a New York listing, also recently disclosed investments in the cryptocurrency.
This follows to approval of the spot Bitcoin funds in January, which Justin d'Anethan, partnership head at digital asset market maker Keyrock, said had subsequently prompted “relentless” demand.
April will see the latest Bitcoin halving take place meanwhile, in the most recent move to limit supply of the digital assets by slashing the reward for producing them by 50%.
This is part of a wider cap on the supply of Bitcoin at 21 million tokens, of which 19 million have already been mined.
Coinbase opened 5.6% higher at US$204.78 on the news.