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

Coinbase Global (COIN) stock has been on a remarkable trajectory, extending its rally on Wednesday and setting a fresh 52-week high. The stock is now within range of its record closing price from November 2021, as the broader digital asset industry follows Bitcoin’s lead. Shares of the crypto exchange rallied by as much as 7.1% Wednesday morning, reaching an intraday high of $369.25. At the time of reporting, COIN was trading around $352, marking a 2% gain for the day.

The stock has also rebounded 133% from its April low, which occurred during a broad market sell-off. With the rally, COIN has set a fresh 52-week high and is 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 rallied more than 42% since the start of the year, fueled by rising Bitcoin prices, pro-industry regulatory developments in the United States and steady revenue growth.

While Coinbase’s first-quarter revenue came in below expectations, it rose 24.2% year-over-year to $2.03 billion. Subscription and services revenue grew 36.3% to $698.1 million, driven largely by income from stablecoins. Coinbase shares are rallying alongside stablecoin issuer Circle Internet Group’s highly 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.

As of Wednesday, Coinbase had reclaimed the top spot in the MVIS Global Digital Assets Equity Index, which tracks the largest and most liquid publicly traded crypto companies. The positive regulatory environment has also played a crucial role in boosting investor confidence, as pro-industry regulations have provided a more stable and predictable framework for the cryptocurrency market. Additionally, Coinbase's steady revenue growth has further solidified its position as a leading player in the industry, attracting more investors and driving up its stock price. The company's ability to maintain strong financial performance amidst market fluctuations has been a key factor in its success, making it an attractive option for investors seeking exposure to the cryptocurrency sector.