What Happened?
Shares of blockchain infrastructure company Coinbase (NASDAQ: COIN) jumped 3.4% in the morning session after the cryptocurrency market rallied amid economic uncertainty, and the company benefited from positive operational updates.
Investors shifted capital into crypto amid concerns over a US government shutdown and a weakening dollar, lifting the entire sector. Adding to the positive sentiment, KeyBanc Capital Markets noted that Coinbase was best positioned to benefit from the growing adoption of stablecoins, a type of cryptocurrency pegged to a stable asset like the U.S. dollar. The company also improved its service by integrating the 1inch Swap API to enhance token swaps in its app. This news followed a recent milestone where the company surpassed $1 billion in on-chain Bitcoin-backed loans, signaling strong growth.
After the initial pop the shares cooled down to $361.13, up 4.3% from previous close.
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What Is The Market Telling Us
Coinbase’s shares are extremely volatile and have had 59 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 24 hours ago when the stock gained 3.3% on the news that investment firm BTIG initiated coverage on the stock with a 'Buy' rating and a $410 price target.
The analyst firm pointed to what it called 'underappreciated' growth areas, such as the company's derivatives business and the Base App. The positive news did not stop there, as Coinbase also surpassed $1 billion in bitcoin-backed onchain loans, showing significant growth for the service. Further bolstering investor confidence, new guidance from the SEC's staff allowed state-chartered trust companies, including Coinbase, to act as qualified custodians for crypto assets for investment advisers, clearing up regulatory uncertainty.
Coinbase is up 40.4% since the beginning of the year, but at $361.13 per share, it is still trading 14% below its 52-week high of $419.78 from July 2025. Investors who bought $1,000 worth of Coinbase’s shares at the IPO in April 2021 would now be looking at an investment worth $1,100.
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