Coinbase Stock Surges Above $250 as Bitcoin Hits New Highs

The stock of Coinbase (COIN) has experienced a remarkable 60% growth in 2024, driven by the strong performance of Bitcoin and an optimistic outlook for the exchange.

Coinbase stock surged by 60% in 2024, reclaiming its initial listing price.

Introduction

Coinbase (COIN) stock has experienced remarkable growth in recent weeks, surpassing its listing price and currently trading above $252. This represents a substantial 60% surge since the beginning of the year. After enduring a significant slump during the crypto winter, with shares dropping to as low as $33 in 2023, the stock has rebounded and reached the $250 mark for the first time in two years on March 8. Over the past year, Coinbase shares have risen over an impressive 300%.

Riding the Bitcoin Wave

The bullish movement of Coinbase stock is closely tied to the performance of Bitcoin (BTC) in the cryptocurrency market. As Bitcoin reached a record high on March 8, briefly touching $70,000 before settling around $68,000, Coinbase stock benefited from the momentum. The rally in cryptocurrencies can be attributed to increasing flows from Bitcoin exchange-traded funds (ETFs) and the anticipation surrounding Bitcoin’s upcoming halving event.

BlackRock’s iShares Bitcoin Trust (IBIT) is a perfect example, amassing $10 billion in assets under management (AUM) within just seven weeks of its launch on March 1. This highlights the growing interest and demand for Bitcoin investments.

Coinbase stock performance year-to-date as of March 8, 2024. Source: Google Finance.

• Masa Network raised $8.75 million through CoinList’s community sale of MASA tokens.
• S3.MONEY Announces Stablecoin Studio on Sui Blockchain
• Dogwifhat Investors Shift to Viral ICO Sponge (SPONGE)

Coinbase’s Involvement in Bitcoin ETFs

Coinbase Custody, the custody arm of Coinbase, has formed partnerships with several asset managers that launched Bitcoin ETFs in January. These partnerships position Coinbase to benefit financially from the revenue generated by Bitcoin ETFs. It is estimated that these products will generate anywhere between $25 million and $30 million in fees for the company.

Strong Earnings and Positive Outlook

During Coinbase’s latest earnings call, the company showcased its resilience in the fourth quarter of 2023. Net revenue for Q4 2023 reached an impressive $905 million, a 45.2% increase from the previous quarter, surpassing consensus expectations of $825 million. This positive performance, along with the growing influence of Bitcoin ETFs on crypto markets, led JPMorgan analyst Kenneth Worthington to revise his stock rating from “underweight” to “neutral.” However, the analyst sets the stock target price at $80, well below the current trading price.

In a note dated February 15, Worthington stated, “Given the acceleration in recent days of flows into Bitcoin ETFs and the significant price appreciation of Bitcoin and now Ethereum, we are returning to a Neutral rating on Coinbase as we see the higher cryptocurrency prices not only sustaining, but improving, activity levels and Coinbase’s earnings power as we look to 1Q24.”

Q&A Content

Q: What factors are contributing to the surge in Coinbase stock?

A: The surge in Coinbase stock can be attributed to the strong performance of Bitcoin, which reached record highs, as well as the growing interest in Bitcoin ETFs. Coinbase’s involvement in Bitcoin ETFs positions the company to benefit financially from the fees generated by these investment products.

Q: How has Coinbase’s financial performance been recently?

A: Coinbase performed exceptionally well in the fourth quarter of 2023, surpassing consensus expectations. The company reported a net revenue of $905 million, representing a significant increase of 45.2% compared to the previous quarter.

Q: Why did the JPMorgan analyst revise the stock rating for Coinbase?

A: The JPMorgan analyst revised the stock rating of Coinbase from “underweight” to “neutral” due to the positive impact of Bitcoin ETFs on the crypto markets. However, the analyst’s target price for the stock remains conservative at $80.

Future Outlook and Investment Recommendations

Based on the current trends and events in the cryptocurrency market, the future outlook for Coinbase remains promising. With the continued interest in Bitcoin and the anticipated growth of Bitcoin ETFs, Coinbase is well-positioned to benefit from the increasing activity levels and earnings power in the industry. Investors should consider the potential opportunities presented by Coinbase stock as the cryptocurrency market continues to evolve.

Reference List:

1. Bitcoin Surpasses $61,000, New All-Time High Approaches
2. Tether Achieves Record $62 Billion Annual Profit, Nears $100 Billion Assets
3. ‘Crypto is Inevitable’ so we went ‘all in’ — Meet Vance Spencer, permabull
4. Crypto is inevitable
5. All about cryptocurrency trading

---

Hey readers, have you been watching the recent surge in Coinbase stock? 📈 It’s been quite the rollercoaster ride! Let’s dive into why Coinbase is making waves in the market and what the future might hold.

First off, Coinbase stock has been on a tear lately, climbing back to its listing price and currently sitting above $252. That’s a whopping 60% surge since the start of the year! 🚀 After a rough time during the crypto winter, with shares plummeting to as low as $33 in 2023, Coinbase has made an impressive comeback.

The success of Coinbase stock is closely tied to the performance of Bitcoin. 📈 As Bitcoin reached new all-time highs, briefly touching $70,000, Coinbase stock rode the wave of excitement. And it’s not just Bitcoin setting records; increasing flows from Bitcoin exchange-traded funds (ETFs) and the anticipation surrounding Bitcoin’s upcoming halving event are driving the overall cryptocurrency rally.

BlackRock’s iShares Bitcoin Trust (IBIT) is a prime example of the enthusiasm for Bitcoin investments. In just seven weeks since its launch, it has already gathered a staggering $10 billion in assets under management (AUM). That’s some serious interest!

But Coinbase’s involvement in Bitcoin ETFs doesn’t stop there. Coinbase Custody, their custody arm, has partnered with several asset managers who launched Bitcoin ETFs in January. This move positions Coinbase to benefit financially, with estimates suggesting that these partnerships could generate $25 million to $30 million in fees for the company. 💸

The latest earnings call for Coinbase revealed a resilient fourth quarter in 2023, exceeding expectations with net revenue of $905 million. 📊 This impressive performance, combined with the positive impact of Bitcoin ETFs on the crypto markets, led JPMorgan analyst Kenneth Worthington to revise his stock rating from “underweight” to “neutral.” However, he set the stock target price at $80, well below the current trading price.

Worthington explained, “Given the acceleration in recent days of flows into Bitcoin ETFs and the significant price appreciation of Bitcoin and now Ethereum, we are returning to a Neutral rating on Coinbase as we see the higher cryptocurrency prices not only sustaining, but improving, activity levels and Coinbase’s earnings power as we look to 1Q24.”

So, what does the future hold for Coinbase? 🤔 The outlook remains promising with Bitcoin’s continued growth and the increasing popularity of Bitcoin ETFs. Coinbase is in the perfect position to capitalize on the rising activity levels and boost its earnings power. If you’re an investor, it might be worth considering Coinbase stock as the crypto market evolves.

---

Did you enjoy this ride through the world of Coinbase stock and Bitcoin? Share your thoughts in the comments below and let us know your investment strategies! And if you found this article informative and entertaining, don’t forget to share it with your fellow crypto enthusiasts. 🚀💰

We will continue to update Blocking; if you have any questions or suggestions, please contact us!