On November 11, Coinbase stock (COIN) experienced a 20% increase in its stock price, which resulted in the company’s stock surpassing $300 for the first time since 2021.
Donald Trump’s victory in the presidential election has resulted in substantial gains for coinbase stock, as many individuals anticipate that his victory will positively impact the industry, according to Cointelegraph Research.
Coinbase Stock soars since 2021
In a research note published on November 7, Michale Miller, an equities researcher at Morningstar Inc., stated, “We perceive Coinbase stock as a beneficiary of the election results, as the company has been grappling with regulatory pressure from the SEC and has been combating the agency in court.”
Miller stated that the firm’s staking operation will experience less regulatory pressure due to the incoming Donald Trump administration’s anticipated more favorable treatment of the cryptocurrency industry.
“A more permissive approach to cryptocurrency will likely provide a tailwind to cryptocurrency prices, albeit less directly.”
Coinbase’s CEO, Brian Armstrong, stated in an article published on the X platform on November 6, “Crypto received the full backing of the victorious presidential candidate.”
Armstrong declared that the “next Congress will be the most pro-crypto Congress ever” and that the country “fully repudiated the work of Senator Warren and Gary Gensler who tried for years to kill our industry unlawfully.”
Coinbase stock reported revenues of $1.2 billion and profits of $75 million in the third quarter of 2024 on October 30.
According to a shareholder letter dated October 30, Coinbase concentrates on “certain components that are currently in place to facilitate the adoption of blockchain technology by one billion users.”
“In Q3, we made substantial progress in the integration of stablecoins throughout our product suite and the expansion of the Base network,” the letter stated, alluding to Coinbase’s layer two scaling network.
On November 5, Galaxy Digital, an additional cryptocurrency trading firm, experienced its most significant trading day of the year due to the surge in interest in cryptocurrency following Trump’s victory.
Bloomberg reported that Galaxy’s CEO, Michael Novogratz, stated, “[O]ur franchise was operating at full capacity—trading with counterparties both in the US and abroad, lending, and the derivative desk.”
Novogratz stated, “It truly felt like a confirmation of our progress.”
