Coinbase sharpening Despite hack fears – here is why

The Stock of Coinbase rose on Friday with 9% after the addition to the S&P 500 and the subsequent upgrade by analysts, and despite the admission of the crypto exchange earlier this week that it had suffered a large data breach and continues to be investigated by federal regulators.

Benchmark Equity Research increased its target for the CoinBase shares on Friday to $ 301 – an increase of 19% compared to his earlier $ 252 prediction, according to the company report of 16 May.

Coinbase shares closed at $ 266.32 – a rebound of the dip of the previous days that seemed to be activated by news that cyber criminals had stolen customer data and tried to blackmail the company and that it remained the target of a regulating study.

Coin has maintained a ‘buy’ rating because its inclusion in the S&P 500 positions it to attract more inflow, Benchmark analyst Mark Palmer wrote Friday.

“The addition of the company will position it to take advantage of passive investment flows in funds follow … that are necessary to buy currency shares to match the index,” Palmer said in the report. “This extra source of purchasing pressure should support the company’s share price.”

The Coin rally follows the recording of the trading platform in the S&P 500, making it the first and only crypto company that is among the top 500 listed US companies through market capitalization. Coinbase shares rose by more than 20%after the announcement.

Earlier this month, the company took over Crypto Exchange Deribit – a movement that is ready to expand the global footprint of Coinbase by expanding its derivative offer for institutional and retail traders. Around that time, the company also reported an increase of 24% in its total turnover for the first quarter compared to the quarter of the year, largely powered by the growth of its transaction income and subscriptions and services. The company also achieved higher income from his partnership with Stablecoin Emittent Circle.

That Gulf of Good News beat two developments on Thursday.

Coinbase revealed that it had received a letter from cyber criminals who demanded $ 20 million to Bitcoin for the return of customer data that had been stolen. Coinbase CEO Brian Armstrong said on Thursday in a video published on X that the company would not meet the requirements.

The same day, the company also confirmed to the New York Times that it is being investigated by the US Securities and Exchange Commission, despite the pro-Crypto-pivot of the Agency in recent months.

Published by James Rubin