Coinbase Shares Soar 4.50% on GENIUS Act Passage

Coinbase Global (COIN) shares surged 4.50% today, marking the second consecutive day of gains, with a total increase of 21.56% over the past two days. The stock price reached its highest level since December 2024, with an intraday gain of 5.24%.

The strategy of buying COIN shares after they reached a recent high and holding for 1 week yielded mixed results over the past 5 years. While there were some profitable periods, such as the 12-month gain of 34.4% starting from the high point in early 2021, there were also significant losses, like the 12-month decline of 26.8% beginning in late 2021. The overall performance was volatile, with no clear pattern of profitability. This suggests that relying solely on this strategy may not be reliable for long-term gains.

Recent legislative developments have positively impacted Coinbase's stock price. The passing of the GENIUS Act, which regulates and promotes the use of stablecoins, has contributed to a rise in Coinbase shares. This legislation is seen as a significant step forward for the cryptocurrency industry, providing a more stable regulatory environment for stablecoins and potentially increasing their adoption.

However, Coinbase's stock has also faced challenges due to a material cybersecurity incident. This incident led to a 7% decline in its share price, raising concerns among investors about the security of the platform. The incident highlighted the vulnerabilities in the cryptocurrency exchange's security measures and the potential risks associated with investing in the company.

Despite the cybersecurity incident, higher trading volume expectations have contributed to positive stock performance. The Zacks Consensus Estimate for Coinbase's earnings per share (EPS) for the second and third quarters of 2025 has increased, indicating higher trading volume expectations. This suggests that investors are optimistic about the company's future performance and its ability to capitalize on the growing demand for cryptocurrency trading.