Coinbase Stock Is Ripping Despite Hack Fears—Here’s Why

Coinbase shares on Friday jumped 9% after its S&P 500 supplement And the subsequent upgrade of analysts, and despite Crypto Exchange acknowledgments earlier this week that it has suffered a major violation of data and remains under investigation of federal regulators.

Benchmark Equity Research increased its goal for Coinbase shares at $ 301 on Friday – an increase of 19% over the pre -prediction of $ 252, according to the company on May 16th.

Coinbase shares were closed to $ 266.32 – the aversion of previous days, which seemed to be launched by the news that Cyber ​​-Kriminalians had stolen customers’ information and tried to blackmail the company and that the aim of the regulatory investigation was left.

Coin held the “Buy” rating as his inclusion in the S&P 500 to attract more inflows, Mark Palmer’s reference value analyst wrote on Friday.

“The company supplement will position it in favor of passive investment streams in the funds that follow the index … which will be needed to buy coin shares to fit the index,” Palmer said in the report. “This additional source of purchase pressure should support the company’s share price.”

The Coin’s Rally follows the involvement of the S&P 500 trade platform, which makes it the first and only crypto to a company that ranked among 500 US 500 public trade companies per market capitalization. Coinbase stock jumped over 20% After the announcement.

Earlier this month, the company bought Crypto Exchange deribit – a move that is ready to expand the global trace of Coinbase by expanding its derivatives for institutional and retail traders. Roughly at that time the company also reported 24% increase in total revenue In the first quarter compared to the annual quarter, to a large extent, fueled by the growth of revenue and subscription and transaction service. The company also booked a higher income than its partnership with Stablecoin’s publishing circle.

That series of good news on Thursday extinguished two events.

Coinbase revealed that he received a letter from Cyber ​​criminals looking for $ 20 million Bitcoin To return information about customers who have been stolen. Coinbase Executive Director Brian Armstrong said on Thursday in a video posted on X that the company will not be in accordance with the requirements.

On the same day, the company also confirmed the New York Times Remains under investigation The American Commission for Securities and Exchange, despite the pro-crime turning drive in the last few months.

Edited by James Rubin