Coinbase shares have risen 130% since the beginning of the year amid the cryptocurrency rally
Shares of U.S. cryptocurrency exchange Coinbase rose 130% since the beginning of the year amid the rally in cryptocurrencies
Despite a difficult year for the exchange in 2022, at the end of which it recorded a net loss of $2.6 billion, the exchange is expanding its presence outside of the United States
Shares of cryptocurrency exchange Coinbase (COIN) have risen more than 130% since the beginning of the year amid a cryptocurrency rally. At the close of trading on the New York Stock Exchange on March 21, the exchange's securities were worth $83.99 per share, the highest since August 17, 2022. On the first trading day of 2023 (Jan. 3), Coinbase shares started trading at $36.49 on the NYSE.
The rise in Coinbase stock reflects investor interest in digital assets, which has grown since the beginning of the year and strengthened in March amid the U.S. banking crisis. On March 19, bitcoin crossed the $28,500 mark for the first time since June 2022, Ethereum rose to $1,800 and the total market capitalization of cryptocurrencies has risen 14.4% to $1.22 trillion since the beginning of the year.
The rising share price was a welcome development after a tough year for Coinbase, which recorded a net loss of $2.6 billion for 2022. Amid the protracted crypto-zine, revenues at the largest U.S. crypto-exchange more than quadrupled last year: the crypto-exchange earned $605 million in the last quarter of 2022, compared to $2.49 billion in the same period in 2021.
"To state the obvious, 2022 was a challenging year for cryptocurrency markets and our transaction revenues," the exchange said in a statement to shareholders.
Coinbase also faced difficulties this year after the collapse of Silvergate and Signature banks, which were partners of the exchange. It withdrew from working with the troubled banks and began looking for new payment providers.
Despite the difficulties, the exchange continues to expand its line of products and services outside of the U.S. On March 8, Coinbase announced its intention to increase its presence on six continents over the next eight weeks: South America, Europe, Africa and the Middle East, Asia, Australia, and North America.
On March 15, the exchange announced that it had received approval in principle from the Monetary Authority of Singapore (MAS) to provide digital asset services and a new partnership with Standard Chartered Bank to facilitate cryptocurrency transactions for residents of that island nation.
On March 21, the platform announced integration with Pix, an instant payment platform created and managed by the Central Bank of Brazil, as well as a partnership with Ebanx, Brazil's multifunctional payment solutions platform for online businesses and financial institutions.
