Key Insights
- A rally across Bitcoin and altcoins drove major crypto stocks higher during September.
- Movement in US bond yields will keep traders closely tracking Circle stock.
- As BitMine finishes up its Ethereum purchases, the company will remain a major focal point.
A strong rebound in September characterized the performance of most crypto equities as both Bitcoin and a wide array of altcoins recovered. Bitcoin climbed as high as $87,000, while leading altcoins such as Zcash, Near Protocol, Quant, Midnight, and Arbitrum posted triple-digit gains. The following sections examine three crypto stocks to keep an eye on during October.
Circle Stock in Focus as US Treasuries Jump and Arc Gains Momentum
Circle Internet Group experienced an advance in September followed by a partial pullback, even amidst several significant catalysts. The introduction of Arc, its layer-1 network, served as a primary catalyst and has drawn favorable receptions. At present, Arc boasts a total value locked (TVL) exceeding $500 million alongside a stablecoin supply north of $550 million.
Throughout October, investors will monitor Arc’s progress closely. Evidence of continued expansion would prove bullish for shares by establishing a fresh revenue stream for the business, while also setting the stage for a higher potential valuation for an ARC token down the line.
Additionally, Circle will garner attention due to the ongoing surge in US bond yields. The ten-year yield has climbed to 5.2%, and critical 3-month bonds are offering yields above 4.2%. This dynamic matters significantly for Circle because it deploys its cash reserves into short-term bonds and swaps.
Furthermore, shifts within the stablecoin market will influence Circle stock. Supported by the broader digital asset rally and a recent alliance with Binance, the market capitalization for its USDC stablecoin has risen past $75 billion. September saw Binance acquire a $100 million stake in Circle alongside a joint agreement to champion USDC worldwide, a pact that entails Circle paying a monthly fee to Binance.
BitMine to Conclude its Ethereum Buying
BitMine shares performed well in September, peaking at $28.8—the equity’s highest price point since January. This upward movement mirrored Ethereum’s price trajectory, which tested resistance at $2,800 over the course of the month.
Spotlight attention now turns to BitMine as its accumulation of Ethereum draws to a close. Holding over 6 million ETH tokens presently, the firm accounts for 4.9% of the circulating supply. Only a handful of additional tokens remain to be acquired before reaching the targeted “Alchemy of 5%.”
Reaching this threshold holds major significance because it allows the company to halt shareholder dilution. Furthermore, the firm plans to stake the entire holding to produce a recurring monthly yield, having already secured an annualized revenue run-rate surpassing $300 million.
From a technical standpoint, the BMNR stock price has printed a golden cross chart pattern, signaling the potential for additional upward momentum.
Coinbase Stock in Focus Ahead of Earnings
Scheduled to release its earnings figures on the 29th, Coinbase stands out as another key crypto stock to watch in October. The upcoming financial results are anticipated to reflect improvements driven by the recent market rally that lifted Bitcoin and alternative digital assets.
Coinbase gains advantages from market rallies through multiple channels. Such environments stimulate elevated transaction volumes as retail and institutional investors jump back in, while simultaneously encouraging greater inflows into exchange-traded funds. In fact, spot Bitcoin ETFs brought in over $2.6 billion during September, following a $3.5 billion addition in October, and Coinbase maintains its position as the largest player in the ETF custody space.
The enterprise also maintains substantial direct exposure to digital assets on its balance sheet. Holding over 150k ETH tokens positions the company as the fifth-largest holder, while its cache of more than 17,000 Bitcoin makes it the eighth-largest holder.
Consequently, actual financial outcomes may outpace prevailing expectations. Data sourced from Yahoo Finance indicates that consensus estimates currently project a 37% drop in third-quarter revenue to $1.17 billion.
This article is for informational purposes only and does not constitute financial or investment advice. Wallet transfers do not by themselves confirm buying or selling.
Frequently Asked Questions
Why are crypto stocks in focus for October?
Crypto stocks are drawing significant attention following a strong September performance, fueled by a broader market rally in Bitcoin and various altcoins, alongside upcoming company earnings and major project milestones.
What is driving interest in Circle stock?
Circle is capturing attention due to the growth of its new layer-1 network, Arc, surging US bond yields that impact its short-term bond and swap investments, and the rising market cap of its USDC stablecoin following a recent partnership with Binance.
Why is BitMine’s Ethereum accumulation important?
BitMine is nearing its goal of acquiring 5% of the circulating Ethereum supply (the “Alchemy of 5%”). Reaching this milestone will allow the company to stop diluting shareholders, stake its tokens for monthly returns, and build on its annualized revenue of over $300 million.
When is Coinbase releasing its next earnings report?
Coinbase is scheduled to publish its quarterly earnings report on October 29th, which investors anticipate will reflect the benefits of recent crypto market rallies and ETF custody inflows.