What Happened?
Shares of blockchain infrastructure company Coinbase (NASDAQ: COIN) jumped 3.3% in the afternoon session after 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.
After the initial pop the shares cooled down to $346.88, up 2.8% 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 2 days ago when the stock gained 5.9% on the news that the stock rallied amid a broad surge in the cryptocurrency market, fueled by positive regulatory commentary and signs of increasing institutional interest. The overall market value of cryptocurrencies rose by 2.5% to $3.86 trillion, with major digital assets like Bitcoin reclaiming the $112,000 level and Ethereum climbing 2.8%. This bullish sentiment was bolstered by a significant transaction from BlackRock, the world's largest asset manager, which deposited approximately $206 million in Ethereum and $38 million in Bitcoin into Coinbase Prime, signaling strong institutional positioning. Further supporting the positive mood, SEC Commissioner Hester Peirce noted that the U.S. is entering a more constructive era for digital assets. The move was also supported by a broader economic environment, as the U.S. Federal Reserve resumed its rate-cut cycle, a development generally seen as positive for risk assets like crypto.
Coinbase is up 34.9% since the beginning of the year, but at $346.88 per share, it is still trading 17.4% 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 $1,057.
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