Coinbase rises 43% in June... "Uncertainties resolved"

Cryptocurrency exchange Coinbase recorded a 43% increase in stock price over the month of June. It is analyzed that investor sentiment has strengthened as some concerns regarding Coinbase have been alleviated.

On the 27th (local time) on the New York Stock Exchange, Coinbase closed at $353.43, down 5.77% from the previous day. Although the stock price fell that day, it represents a 43% rise compared to the beginning of the month. This is the highest gain among S&P 500 Index components for June.

Factors cited for Coinbase’s stock price rise include inclusion in the S&P 500 Index, the passage of a stablecoin (crypto asset linked to fiat currency) bill, and the public offering (IPO) performance of USDC issuer Circle. Oppenheimer analyst Owen Lau explained, “These factors are removing doubts about the fee issue and regulatory uncertainty that have been weighing on Coinbase till now,” adding, “In particular, the passage of the stablecoin bill, the Genius Act, is a foregone conclusion.”

There is also an outlook that Coinbase could rise further. Devin Ryan, Head of Financial Technology Research at Citigroup, stated, “The market still does not fully recognize the close relationship between Coinbase and Circle Internet Group,” indicating that Coinbase has further upside potential.

Coinbase is not only a shareholder of Circle but also shares in the fee revenue generated from USDC issued by Circle. If interest and the like are generated from the USDC held by Coinbase, Coinbase receives those benefits.