Shares of the largest cryptocurrency exchange in the United States, Coinbase, rose by 62% in November, and their growth in 2023 has more than tripled, News reports.
In November, shares of Coinbase Global Inc., traded on Nasdaq, rose to above $120, having traded between $70 and $84 in September-October.
Coinbase is the first cryptocurrency exchange to go public. Its IPO on the Nasdaq took place on April 14, 2021, closing its first day of trading at $328.28 per share, giving the company a market capitalization of $85.8 billion.
On November 30, 2023, shares of the cryptocurrency platform closed at $124.7, its market capitalization was $29.8 billion, of which the company gained $13 billion during the November rally. The total growth of the exchange's capitalization from January to November 2023 was 222%. Investors who bet against Coinbase shares suffered losses of $1.3 billion over the past 30 days, Bloomberg reports data from S3 Partners.
Coinbase is enjoying a strong recovery after a major drawdown in 2022 and through much of 2023. Thus, in May 2022, the company’s value dropped below $11 billion, in January 2023 - below $9 billion.
Analyst at Needham & Co. John Todaro calls this period the “shock years” in the cryptocurrency markets. The drawdown in cryptocurrency markets occurred against the backdrop of high-profile investigations by American regulators against a number of trading platforms. They concerned two major competitors of Coinbase. In early November, the founder of the FTX crypto exchange was found guilty of fraudulent transactions, and towards the end, the US authorities' investigation against the world's largest crypto exchange, Binance, ended with a fine of $4.3 billion and the dismissal of the head .
“Those who survive in such conditions become stronger. And Coinbase survived. Today it is in a better position than any other public company,” News reports.
Traders bought shares of Coinbase, expecting its business to improve thanks to an influx of customers refusing the services of competitors with a tarnished reputation. Other reasons include the expectation that the US Securities and Exchange Commission will soon approve the creation of exchange-traded funds (ETFs) for Bitcoin, as well as a general rally in global stock and bond markets amid expectations of easing central bank policies.