Shares of Coinbase surged more than 16% shortly after 10:30 AM on Friday, recovering strongly despite weaker-than-expected quarterly results released the previous day.
The cryptocurrency exchange reported fourth-quarter revenue of $1.8 billion, marking a 20% decline compared to the prior year. The drop reflected softer token prices, which weighed on trading volumes across the digital asset market. Coinbase also posted a net loss of $667 million, largely driven by unrealized losses linked to the revaluation of its cryptocurrency holdings and investment portfolio.
Although the earnings report disappointed on the surface, investors appear to be reassessing the stock’s valuation. Coinbase shares had already fallen significantly in the weeks ahead of the announcement as overall sentiment toward cryptocurrencies weakened.
Friday’s sharp rally suggests that much of the negative outlook may have already been priced into the stock. Market participants now seem to view the recent pullback as a potential buying opportunity rather than a longer-term warning sign.
Bitcoin also bounced higher on Friday, posting its first gain in five trading sessions. Coinbase stock and Bitcoin prices often move in correlation, as both tend to reflect broader cryptocurrency market trends and investor appetite for digital assets.
