Coinbase Stock Is Ripping Despite Hack Fears—Here's Why
Coinbase's stock rose 9% after its addition to the S&P 500 and an analyst upgrade, despite a recent data breach and ongoing federal investigations. Benchmark Equity Research increased its target price for Coinbase to $301, reflecting a 19% rise from the previous estimate. Shares closed at $266.32, recovering from a dip linked to cybercriminals stealing customer data and attempting to extort the company. The S&P 500 inclusion is expected to attract passive investment flows, enhancing share price support. Coinbase also acquired crypto exchange Deribit, expanding its derivatives offerings and reported a 24% revenue increase in Q1, driven by transaction revenue and partnerships. However, the company faced threats from cybercriminals demanding $20 million in Bitcoin and confirmed an SEC investigation.
