The crypto exchange is one of the big winners from the United States elections on Nov. 5.
Shares of cryptocurrency exchange Coinbase Inc. (COIN) surged more than 20% on Nov. 11, pushing the stock past $300 for the first time since 2021.
United States crypto stocks are seeing massive gains after Donald Trump’s victory in the presidential election, as many believe his win will benefit the industry, Cointelegraph Research said.
“We see Coinbase as a beneficiary of the election results as the firm has been struggling with regulatory pressure from the SEC, with the firm actively fighting the agency in court,” Michale Miller, an equities researcher at Morningstar Inc., said in a Nov. 7 research note.
“With the incoming Donald Trump administration expected to be more favorable to the cryptocurrency industry, the firm’s staking business will face less regulatory pressure,” Miller said.
“Less directly, a more permissive approach to cryptocurrency will likely provide a tailwind to cryptocurrency prices.”
Source: Google Finance
Related: Galaxy Digital clocks biggest trading day of year on US election day: Report
“Crypto got the full-throated support of the winning presidential candidate,” Coinbase’s CEO, Brian Armstrong, said in a Nov. 6 article on the X platform.
“The country fully repudiated the work of Senator Warren and Gary Gensler who tried for years to unlawfully kill our industry,” Armstrong said, adding “[t]his next Congress will be the most pro-crypto Congress ever.”
On Oct. 30, Coinbase reported revenues of $1.2 billion in the third quarter of 2024 and profits of $75 million.
Coinbase is focused on “some of the building blocks that are now in place to help bring one billion users onchain,” according to an Oct. 30 shareholder letter.
“In Q3, we made significant progress advancing some of these building blocks — notably, integrating stablecoins across our product suite and growing the Base network,” the letter said, referring to Coinbase’s layer 2 scaling network.
Another cryptocurrency trading firm, Galaxy Digital, clocked the biggest trading day of the year on Nov. 5 as Trump’s victory sparked a surge of interest in crypto.
“[O]ur franchise was operating at full boar — trading with counterparties both in the US and abroad, lending, the derivative desk,” Michael Novogratz, Galaxy’s CEO, reportedly told Bloomberg.
“It really felt like an affirmation of everything we’ve been working for,” Novogratz said.
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