Coinbase Surges Before Q4 Report Amid Bitcoin Rally
Shares of cryptocurrency exchange Coinbase have surged nearly 27% over the past five days. Additionally, the rally comes as the exchange is set to release its fourth-quarter earnings results on Thursday.
The stock surge aligns with a recent Bitcoin price spike as analysts forecast strong trading volume and revenue growth numbers from the company.
- Coinbase stock is up 27% in a week as crypto market sentiment improves.
- Q4 revenue is expected to rise 22% to $825 million on higher trading volumes.
- Bitcoin breached the $52,000 level, regaining the $1 trillion market cap.
According to MarketWatch, Wall Street analysts predict Coinbase will post $825 million in quarterly revenue. That would represent a 22% jump from the $676 million generated in the third quarter.
The gains are expected to be fueled principally by trading activity, with estimated volumes of $142.7 billion for the quarter compared to just $76 billion last quarter.
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Coinbase optimistic projection comes amidst market rally
The optimistic projections come as the cryptocurrency market shows signs of life after a painful 2022 bear market. Bitcoin has risen above $52,000, lifting the broader crypto market.
On February 13, BlackRock’s Bitcoin ETF took in a single-day record of $493 million as investors flocked back to crypto products. However, analysts warn that sustained growth for Coinbase relies on persistent retail interest in trading cryptocurrency funds.
The company is also battling a lawsuit from the Securities and Exchange Commission alleging Coinbase improperly listed unregistered securities.
Read more: Australian Officer Accused Of Stealing Millions In Seized Bitcoin
For now, the mood appears brighter, with the stock up 27% over the last week and 14.24% in the last 24 hours, according to Google Finance. The latest crypto surge, along with rising spot BTC ETF demand, has positioned Coinbase shares for a breakout quarterly report.
