Coinbase Global Inc. ripped nearly 17% higher on triple-average trading volume, just a day after posting weak results, a sign that investors had already braced for worse.
The company posted softer trading volumes and pressure on transaction revenue, underscoring its dependence on digital-asset swings. But with the stock sliding for weeks into earnings, expectations were low and positioning defensive—leaving room for a sharp reversal.
Bitcoin rallied for the first time in five trading sessions, rising as much as 5.3% to $69,263. Coinbase often trades in tandem with the original digital currency, which accounts for about 60% of the entire value of the crypto market.
"Some investors are likely looking for a bottom here," said Dan Dolev, an analyst at Mizuho Securities, which has a "neutral" rating on the shares. "We obviously can't predict crypto bottoms, but fundamentally there were certainly good things in this earnings report that were likely overlooked like 12 different products that were doing over $100 million in revenue."
The stock was up 16% to about $164 on Friday, the biggest intraday increase since June 2025. Coinbase had stumbled around 8% yesterday and is down about 45% in the past year.
After the close of trading Thursday, Coinbase disclosed that fourth-quarter revenue fell a greater-than-expected 20% to $1.8 billion, as declining token prices drained trading activity across digital assets. After registering an unrealized loss to mark down the value of its crypto holdings and investments, the company posted a net loss of $667 million.
Over the past several years, Coinbase has worked to reduce its reliance on spot trading. A sizable portion of the firm's revenue came from revenue-sharing tied to USD Coin, issued by Circle Internet Group Inc., a stream analysts view as higher margin and more predictable than transaction fees tied to trading volumes.
The uptick in Coinbase's share price may be in part to Chief Executive Officer Brian Armstrong's constructive comments on the crypto market structure bill during the earnings call, said Mark Palmer, an analyst at Benchmark Co.
Draft stablecoin legislation being negotiated in Washington could restrict exchanges from offering rewards tied to users' stablecoin balances, a change that could directly affect Coinbase's revenue-sharing arrangement with Circle. Last month, Coinbase pulled its support for the current version of the bill, saying that it "would be materially worse than the current status quo" and that Coinbase would "rather have no bill than a bad bill."
"Given Coinbase's opposition to the bill to this point due to its prohibition on stablecoin interest, those comments offer a glimmer of hope during a tough time for the crypto space in general and the company's shares in particular," Palmer said.