Coinbase Stock Reaches New Closing High
Coinbase Global (ticker COIN) shares reached a record high since their market debut in April 2021, closing at $375.07 per share with a 5.5% gain. This month alone, the stock surged 40%, surpassing the previous all-time high of $357.39 from November 2021, and reached a market cap of $89 billion. A key driver of this growth is Circle Internet's (ticker CRCL) market entry, whose stock skyrocketed by 500% after starting at $31 per share. Notably, in 2024, Circle allocated over 60% of its USDC reserves' income to Coinbase. Additionally, Coinbase became the first pure-play crypto company to join the S&P 500 index as of May 19. Market analysts, including Bernstein, raised their target price for Coinbase to $510, likening the company to the 'Amazon of crypto financial services.'
FAQ
❓ Why did Coinbase's stock price increase?
Coinbase's stock surged due to a strong market presence, favorable partnerships like with Circle, and its inclusion in the S&P 500 index.
❓ What role does Circle play in Coinbase's growth?
Circle significantly contributes to Coinbase's earnings by distributing over 60% of USDC reserves' income and maintaining strong stock growth.
❓ What is Coinbase's position in the S&P 500?
Coinbase is the first pure-play cryptocurrency company to be included in the S&P 500 index.