- Coinbase’s stock jumped 9% after joining the S&P 500, despite data breach revelations and ongoing SEC scrutiny.
- Analysts raised COIN’s target price to $301, citing expected inflows from index-tracking funds.
- The firm’s acquisition of Deribit and a 24% revenue surge in Q1 further boosted investor confidence.
Coinbase’s stock soared by 9% on Friday after being added to the S&P 500, even amid revelations of a data breach and ongoing regulatory scrutiny. Benchmark Equity Research upgraded its target price for COIN to $301, noting the boost from inclusion in the index.
Analysts See Positive Momentum
Benchmark analyst Mark Palmer highlighted that COIN’s addition to the S&P 500 would likely attract passive investment flows, supporting its share price. The recent inclusion makes Coinbase the first crypto company to join the top 500 U.S. publicly traded firms.
Deribit Acquisition and Revenue Growth
Coinbase’s global expansion was bolstered by acquiring Deribit, boosting its derivatives offerings. Additionally, the company reported a 24% revenue increase in Q1 compared to the previous year, driven by transaction revenue and its partnership with Circle.
Challenges Amid Success
Despite the positive developments, Coinbase faced a $20 million Bitcoin ransom demand after cybercriminals stole customer data.
The firm also remains under investigation by the SEC, though its inclusion in the S&P 500 has helped counteract the negative news.
