Coinbase and other crypto stocks surge as bitcoin pops

Shares of bitcoin miners Marathon Digital Holdings Inc.

MARA

and Riot Platforms Inc.

RIOT

were each up more than 10%. Shares of Hut 8 Mining Corp.

HUT

were up 14%.

The rallies in crypto-related stocks come as Bitcoin

BTCUSD

was up more than 7% Tuesday morning, while Ethereum

ETHUSD

was up more than 4%.

“With [Bitcoin] spiking in anticipation of a Fed pivot, the recent rally could have legs, but we continue to recommend a conservative approach to this sector,” DA Davidson analyst Chris Brendler wrote Tuesday of the bitcoin-mining names. Brendler has a preference for “higher-quality, low-cost miners with strong balance sheets” and rates Riot and Marathon shares at buy.

He noted that it’s been a volatile year for the mining stocks, which got off to a strong start in 2023 before “selling off over the last month until a massive, Fed-induced short-covering yesterday brought them back to positive territory.”

Still, “the rapid, unexpected demise of Silvergate, Silicon Valley Bank, and Signature are still rippling through the crypto market and the level of contagion is hard to predict at this early stage,” he noted.

See also: Coinbase’s stock rallies but USDC concerns linger even after feds’ SVB protections

Read: Collapse of Signature, Silvergate may create crypto liquidity issues as banks shy away from purchases