Coinbase Stock Soars on BlackRock Partnership News

Shares of the crypto exchange opened trading up 31% on Thursday.

AccessTimeIconAug 4, 2022 at 2:03 p.m. UTC
Updated May 11, 2023 at 5:44 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Coinbase Global (COIN) shares started the trading day Thursday with a 31% increase to $106, after the cryptocurrency exchange announced a new partnership with asset management giant BlackRock (BLK). Shares were then briefly halted for trading by the Nasdaq for volatility. They were recently trading up 20% to $97.36.

More than 25 million shares of Coinbase were traded in the opening hour of trading, compared with the stock's average daily volume of 15 million shares.

  • What South Korea's Latest Election Means for Crypto Adoption in the Country
    00:38
    What South Korea's Latest Election Means for Crypto Adoption in the Country
  • Hong Kong Approving an Ether ETF Could Be a 'Surprise,' Analyst Says
    00:52
    Hong Kong Approving an Ether ETF Could Be a 'Surprise,' Analyst Says
  • What South Korea's Elections Mean for Crypto; The Potential for Spot BTC and ETH ETFs in Hong Kong
    19:02
    What South Korea's Elections Mean for Crypto; The Potential for Spot BTC and ETH ETFs in Hong Kong
  • Would You Get Paid in Crypto?
    00:57
    Would You Get Paid in Crypto?
  • "Calls that crypto is dead have been overdone," said Edward Moya, senior market analyst for the Americas at OANDA. "In fact, crypto is alive and well. BlackRock has partnered with Coinbase to make crypto available to institutional investors. This is much-needed positive news for crypto traders and should provide some optimism for the longer-term health of the cryptoverse."

    Oppenheimer reiterated its outperform rating on Coinbase stock on Thursday, writing that "in our view, the BlackRock partnership is another validation of 1) the potential of blockchain/digital assets; 2) Coinbase's reputation, technology, compliance and service capabilities; and 3) the scalability of the Coinbase platform to add more tokens and other services."

    The bank noted that BlackRock had $8.5 trillion in assets under management as of the second quarter of this year and that its Aladdin investment platform has more than 200 institutional users.

    Coinbase stock has declined more than 60% year-to-date with the onset of the cryptocurrency bear market. Shares dipped in late June as rival Binance.US launched zero-fee bitcoin trading. Coinbase recovered some losses earlier this week after Robinhood reported quarterly earnings results that included a sequential gain in crypto revenue.

    The company is due to report second-quarter earnings after the close on Tuesday.

    UPDATE (August 4, 14:30 UTC): Added details of trading volume and quote from Moya.

    UPDATE (August 4, 15:42 UTC): Added quote and information from Oppenheimer.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Brandy Betz

    Brandy covered crypto-related venture capital deals for CoinDesk.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about