14th February 2026 – (New York) A day after posting disappointing quarterly results, Coinbase Global Inc. staged a dramatic reversal, with shares surging nearly 17 per cent on more than double average trading volume — a sign that markets had already priced in the worst.
The crypto exchange reported softer trading volumes and pressure on transaction revenue in its fourth-quarter earnings, reflecting the broader slump in digital asset markets. Revenue fell 20 per cent to US$1.8 billion, missing analyst expectations, and the company recorded a net loss of US$667 million after marking down the value of its crypto holdings. Yet investors, who had driven the stock down for weeks ahead of the print, responded by buying aggressively. The rally lifted Coinbase to US$164.32, its biggest intraday gain since May 2025.
The move was supported by a rare rally in Bitcoin, which rose as much as 5.5 per cent to US$69,411 — its first gain in five sessions. The original cryptocurrency accounts for roughly 60 per cent of total crypto market value, and Coinbase shares typically trade in close correlation.
However, analysts pointed to factors beyond Bitcoin’s bounce. Mizuho’s Dan Dolev noted that beneath the headline loss, Coinbase disclosed 12 distinct products each generating over US$100 million in annual revenue — details he believes were overlooked in the earnings gloom.
“There were certainly good things in this report,” Dolev said. “We can’t predict crypto bottoms, but fundamentally there was strength.”
Broader markets also provided a tailwind. Softer-than-expected US inflation data on Friday revived bets on Federal Reserve rate cuts, pushing bond yields lower and lifting risk assets across the board.
“Bitcoin rose nearly 5 per cent over the past 24 hours, most of it this morning after the CPI report,” said Michael Miller of Morningstar Investment Service. “Coinbase remains heavily correlated to crypto prices due to its trading and staking businesses.”
The rally also reflected cautious optimism on the legislative front. During the earnings call, CEO Brian Armstrong made constructive remarks about the crypto market structure bill being negotiated in Washington — comments that Benchmark analyst Mark Palmer described as offering “a glimmer of hope.”
The draft legislation, which includes provisions on stablecoin rewards, has divided the industry. Coinbase withdrew support for the current version last month, warning it “would be materially worse than the status quo.” Banks have lobbied for a ban on yield-bearing stablecoins, arguing they would drain deposits. Palmer noted that Armstrong’s willingness to engage, despite opposition to the current text, suggested room for compromise. “During a tough time for crypto and for Coinbase shares, those comments matter,” he said.
Coinbase has spent years diversifying beyond spot trading, building recurring revenue streams from stablecoin partnerships and staking services. Its agreement with Circle, issuer of USDC, provides a share of income more predictable than transaction fees.
