Coinbase stock is up 60% in 2024, regaining listing value
Coinbase (COIN) stock has seen significant growth in recent weeks, returning to its list price and trading above $252 at the time of writing, which represents a 60% increase since the beginning of the year.
The stock broke above $250 for the first time in two years on March 8, following a steep fall during the crypto winter that saw the stock fall to $33 in 2023. Coinbase shares have soared over the past year. More than 300%.
Fueling the move is the price performance of Bitcoin (BTC), which hit a record high on March 8, briefly touching $70,000 before returning to $68,000. Increased outflows from Bitcoin exchange-traded funds (ETFs) and speculation surrounding BTC's upcoming halving are driving the cryptocurrency's rally.
For example, BlackRock's iShares Bitcoin Trust (IBIT) reached $10 billion in assets under management (AUM) just seven weeks after its launch.
Coinbase is monetizing Bitcoin ETFs. Its custodial arm, Coinbase Custody, has partnered with many of the asset managers that launched a Bitcoin ETF in January. The products are expected to generate $25 million to $30 million in royalties for the company.
The crypto exchange's latest earnings call revealed a strong fourth quarter in 2023. Coinbase's net income in Q4 2023 reached $905 million, a 45.2% increase from the third quarter, exceeding consensus expectations of $825 million.
JPMorgan analyst Kenneth Worthington recently upgraded the stock's rating from overweight to neutral, citing the bitcoin ETF's positive impact on crypto markets. Worthington set his target price on the stock at $80, below its current trading price.
“Given the increased flow into Bitcoin ETFs in recent days and the significant price appreciation of Bitcoin and now Ethereum, higher cryptocurrency prices are not only sustainable, but improving and activity levels and we are returning Coinbase's neutral rating on Coinbase. Looking ahead to 1Q24 We will find earnings power,” the analyst wrote on February 15.
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