Coinbase Global
was climbing Wednesday with shares of the cryptocurrency broker getting a lift from
Bitcoin’s
surge past $60,000.
Coinbase
stock was rising 4.3% Wednesday to $207.68. If the level was maintained, it would mark the stock’s highest close since Feb. 16, 2022, according to Dow Jones Market Data. Shares have now gained 62% in February alone.
Coinbase
stock tends to trade relatively in tandem with
Bitcoin,
the world’s most popular cryptocurrency. The digital currency trading platform sees revenue driven by fees from buying and selling tokens.
Bitcoin’s intraday high on Wednesday was $61,337, the cryptocurrency’s highest intraday level since Nov. 16, 2021, when it hit $64,018, according to Dow Jones Market Data. Bitcoin’s all-time high is $67,352.59, hit on Nov. 9, 2021.
Bitcoin has been rising sharply amid the possibility of lower interest rates, the start of Bitcoin exchange-traded funds, and a change to how miners are paid, which also is known as halving.
Coinbase Chief Financial Officer Alesia Haas said on the company’s fourth-quarter earnings earlier this month that the beginning of the quarter saw lower levels of crypto prices and volatility “but we saw those increase by roughly 40% and 60%, respectively, by the end of the quarter.
“These increases were largely driven by excitement around Bitcoin ETF approvals and broader market expectations for an improved macroeconomic condition in 2024.”
Shares of crypto-related stocks
Marathon Digital Holdings
and
MicroStrategy
were rising 4.7% and 11%, respectively.
Benchmark analyst Mark Palmer initiated coverage of
MicroStrategy
stock with a Buy rating and $990 price target on Tuesday, citing confidence in the company’s strategy of buying up Bitcoin.
Marathon Digital, meanwhile, is scheduled to report fourth-quarter earnings after the stock market closes on Wednesday.
Write to Angela Palumbo at [email protected]
Read the full article here