The stock price of Coinbase, the leading U.S. cryptocurrency exchange, has not only rebounded but surpassed its initial direct listing price, marking a significant milestone since its public debut. This surge coincides with Bitcoin’s recent rally to an all-time high, reflecting renewed investor optimism in the cryptocurrency market.
Coinbase entered the public market through a direct listing in 2021, starting at $250 per share. Initial enthusiasm propelled the stock to a peak of $350 per share in November 2021. However, it concluded its inaugural year with a 38% loss, dampening investor sentiment.
In the subsequent years, Coinbase faced challenges as the cryptocurrency market cooled down and regulatory scrutiny from the Securities and Exchange Commission (SEC) intensified. However, the past year has witnessed a dramatic turnaround for Coinbase, fueled in part by Bitcoin’s resurgence and the SEC’s approval of spot Bitcoin exchange-traded funds (ETFs). As a result, Coinbase’s stock value has surged by over 300% in the past 12 months, signaling renewed confidence among investors.
Today, Coinbase’s stock surged over 5% following the latest bull run in the cryptocurrency market, driven by Bitcoin’s ascent to a new peak of $70,000. However, Coinbase isn’t the only company benefiting from the current bullish trend. Microstrategy Inc., the largest Bitcoin holder, has seen a remarkable 113% increase in its shares over the past month. Similarly, NVIDIA’s stock rallied over 20% this month, thanks to its close association with Bitcoin mining.
Despite Coinbase’s recent achievements, early investors who have held onto their shares since the company’s inception may not feel completely vindicated. By the end of 2022, Coinbase’s stock had plummeted by 86%, underscoring the volatility inherent in the cryptocurrency market.
Nevertheless, Coinbase’s stock trajectory mirrors the broader upward trend in the crypto market, despite recent technical issues on its platform. Some users reported seeing zero balances, highlighting the challenges faced by cryptocurrency exchanges amid growing demand and regulatory scrutiny.
