Coinbase Stock Surges 2% to $352, Nears Record High

Coinbase Global (COIN) stock has been on a strong upward trajectory, reaching a fresh 52-week high and nearing its record closing price from November 2021. This rally is part of a broader trend in the digital asset industry, which has been following the lead of Bitcoin. On Wednesday, shares of the crypto exchange surged by as much as 7.1% in the morning, hitting an intraday high of $369.25. By the end of the day, the stock was trading around $352, marking a 2% gain for the day.

The stock's performance has been particularly impressive, rebounding 133% from its April low. This low point occurred during a broad market sell-off triggered by the announcement of tariffs by then-US President Donald Trump. With this rally, COIN is now within 2% of its record closing price of $357.39. At current values, Coinbase stock has a total market capitalization of $89.6 billion, making it one of the most valuable crypto-focused companies.

Coinbase stock has seen a significant increase of over 42% since the start of the year. This surge is driven by rising Bitcoin prices, favorable regulatory developments in the United States, and steady revenue growth. While Coinbase’s first-quarter revenue fell short of expectations, it still rose 24.2% year-over-year to $2.03 billion. Subscription and services revenue grew by 36.3% to $698.1 million, largely due to income from stablecoins.

Coinbase shares have also been rallying alongside stablecoin issuer Circle Internet Group’s successful initial public offering. After debuting at $31 per share, Circle’s stock, trading under the ticker CRCL, has surged to over $200. Coinbase and Circle maintain a significant partnership centered on the USDC stablecoin, which deepened in 2023 when Coinbase acquired an equity stake in Circle. This partnership has been a key factor in the recent performance of both companies.

As of Wednesday, Coinbase had reclaimed the top spot in the MVIS Global Digital Assets Equity Index (MVDAPP), which tracks the largest and most liquid publicly traded crypto companies. This index is a key indicator of the performance of the digital asset industry and highlights the growing importance of Coinbase in the sector. The rally in Coinbase stock reflects the broader optimism in the digital asset industry, driven by rising Bitcoin prices and favorable regulatory developments.