Coinbase Global Inc (NASDAQ:COIN) shares are trading higher Monday afternoon as a rally in cryptocurrencies ignited buying across crypto-linked equities. Here’s what investors need to know.
- COIN shares are climbing with conviction. See the full story here.
What To Know: Bitcoin (CRYPTO: BTC) climbed about 2% to $88,500, while Ethereum (CRYPTO: ETH) and XRP (CRYPTO: XRP) jumped 5% and 9%, reversing a stretch of selling last week.
Coinbase is effectively a play on Bitcoin because its core business earns percentage-based fees on trading volume. When Bitcoin prices rise, investors' portfolios strengthen and risk appetite improves, drawing retail traders back into spot and derivatives markets.
Higher token prices mean every buy and sell order is larger in dollar terms, so even if the number of trades stabilizes, Coinbase's gross trading value, and therefore its fee revenue, expands.
Rising Bitcoin also tends to reduce uncertainty around Coinbase's earnings power. During last week's crypto crash, COIN slid after Bitcoin tumbled more than 6%, with analysts warning that falling prices trigger forced liquidations, chill speculative activity and cause volumes to evaporate.
Monday’s rebound in Bitcoin eases those concerns. With the Nasdaq-100 rallying on expectations of a Federal Reserve rate cut next month, risk assets are catching a bid.
Crypto's bounce positions Coinbase among the session's notable gainers as investors treat the exchange as a high-beta proxy for Bitcoin's upside.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, Coinbase carries a standout Growth score of 95.62 even as its Momentum score sits at 20.73, highlighting strong long-term potential despite recent volatility.
COIN Price Action: Coinbase Global shares were up 6.77% at $256.44 at the time of publication on Monday, according to Benzinga Pro data.
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How To Buy COIN Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Coinbase Global’s case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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