Shares of cryptocurrency financial services firm Circle Internet Group (CRCL) jumped 6.1% in pre-market U.S. trading on May 5, extending a three-day rally to more than 37%.
The move continues a sharp upward trend for the stock, which had already climbed by a cumulative 31.5% in the two prior trading sessions, according to market data.
The surge in Circle’s equity follows a powerful rally in the underlying cryptocurrency market. Bitcoin, the largest digital asset, touched the $80,000 level this week for the first time, driven by strong inflows into spot Bitcoin ETFs. The broader U.S. stock market also showed strength, with the tech-heavy Nasdaq Composite rising 2% on Wednesday.
Circle's rally suggests a growing investor appetite for crypto-related equities as a proxy for the digital asset market's performance. This sentiment is mirrored in other crypto stocks, where corporate insiders at exchange operator Coinbase (COIN) have recently shown positive sentiment through significant share purchases.
Based on its latest earnings release for the quarter ending December 31, Circle reported quarterly revenue of $1.03 billion. While this was down from $2.27 billion in the same quarter last year, the recent stock performance indicates investors are focused on the renewed momentum in the crypto sector. The analyst consensus on competitor Coinbase Global remains a Moderate Buy with an average price target of $256.62, as reported by TipRanks.
This article is for informational purposes only and does not constitute investment advice.
