Coinbase Global Inc. (NASDAQ:COIN) shares are trading higher Wednesday afternoon, surging alongside a broader crypto market rally as Bitcoin (CRYPTO: BTC) climbs back above the $92,000 threshold. Here’s what investors need to know.
- COIN is delivering impressive returns. Find out why here.
What To Know: Wednesday’s price action underscores the symbiotic relationship between the leading U.S. crypto exchange and the world's largest cryptocurrency. Coinbase's revenue model is heavily dependent on transaction fees.
Historically, as Bitcoin prices rise, retail and institutional engagement accelerates, driving trading volume that generates incremental transaction fees. Additionally, rising crypto prices increase the value of assets held in custody by Coinbase, bolstering the company’s balance sheet.
Essentially, Bitcoin acts as a high-beta proxy for Coinbase's profitability. When the broader asset class thrives, the exchange's potential earnings increase.
Wednesday's gains signal resilience following a volatile week where Argus Research downgraded the stock to “Hold” due to valuation concerns, citing a high 39x multiple on 2026 earnings.
However, bullish sentiment persists, anchored by strong fundamentals. Coinbase recently crushed third-quarter expectations, delivering $1.50 of earnings per share versus the $1.10 consensus.
Institutional confidence remains evident, with Cathie Wood's Ark Invest recently snapping up over $7 million in shares despite the dip. Investors are now looking toward Dec. 17, when Coinbase is expected to unveil new products, potentially including a prediction market and stock trading capabilities.
Benzinga Edge Rankings: According to Benzinga Edge data, Coinbase boasts a Growth score of 95.73, signaling strong expansion potential despite lower scores for Momentum and Value.
COIN Price Action: Coinbase Global shares were up 4.56% at $275.28 at the time of publication on Wednesday, according to Benzinga Pro data.
From a technical perspective, the stock is currently trading approximately 13.9% below its 50-day moving average, which suggests that it may be experiencing some short-term weakness relative to its recent performance.
Additionally, it is trading about 2.7% below its 200-day moving average, indicating that while there is some upward momentum, the stock has not yet regained its longer-term bullish trend.
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How To Buy COIN Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Coinbase Global’s case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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