Coinbase Stock Surges Despite Challenges
Coinbase’s stock price had its best week as November, closing at $266. This is the highest level since February and 88% above its lowest point this year. The company now has a market cap of over $67.8 billion.
Despite facing several challenges, Coinbase’s shares soared. The crypto market rally slowed down, with Bitcoin staying below $105,000. Many altcoins also saw double-digit drops from their monthly highs.
A major hack and an SEC probe added to the company’s woes. Hackers, collaborating with overseas staff, demanded a $20 million ransom. Coinbase refused to pay but offered rewards for catching the hackers. The SEC is also investigating Coinbase for possibly misstating customer data. The company claims it stopped reporting user numbers two years ago.
However, these issues didn’t deter investors. The crypto market’s pullback and the hack didn’t substantially affect its performance. Coinbase’s refusal to pay the ransom and its market position helped. The hack could cost over $400 million. The SEC is probing claims of over 100 million verified users. Coinbase insists it stopped reporting this figure two years ago.
Analysts believe the crypto market’s pullback is temporary.
Analysts remain bullish on coinbase. They cite its strong U.S.market share and expansion into derivatives. The stock’s addition to the S&P 500 Index also boosted its price.
