Coinbase’s value has risen by over a fifth this month, marking the first time since 2021 that the stock surged past the $328 mark.
Donald Trump’s victory in the presidential election has caused massive gains in U.S. cryptocurrency stocks because many people think it will help the industry.
Coinbase’s stock price has increased by over 200 percent within a year, outpacing many of its tech peers and indicating strong investor confidence in the company’s growth trajectory and the potential of the cryptocurrency market.
This milestone highlights how the cryptocurrency industry and its associated businesses are volatile and on momentum. Michale Miller, an equities researcher at Morningstar Inc., stated, “We see Coinbase as a beneficiary of the election results as the firm has been struggling with regulatory pressure from the SEC, with the firm actively fighting the agency in court.”.
The company’s financial health looks solid based on revenue growth of 90.3 percent over the past 12 months and a healthy gross profit margin of 86 percent.
Coinbase appears to be successfully profiting from the surge in the cryptocurrency market. “Some of the building blocks that are now in place to help bring one billion users on-chain” are the main focus of Coinbase, an Oct. Letter to 30 shareholders.
“We made significant progress advancing some of these building blocks in Q3 — notably, integrating stablecoins across our product suite and growing the Base network,” the letter stated, referring to the layer 2 scaling networks of Coin Base.
