Coinbase shares jump 16% despite loss report. Has the crypto market reached the bottom?

Bonds of cryptocurrency exchange Coinbase jumped more than 16%, despite the fact that the day before after the end of the trading session the company reported a net quarterly loss of $667 million and a 20% drop in revenue. Ahead of that report, Coinbase's stock plunged nearly 8%. Probably, "some investors are trying to find a bottom at this level," said Dan Dolev, an analyst at Mizuho Securities, in a commentary for Bloomberg.

Following Coinbase, bitcoin is growing for the first time in the last five sessions on February 13, the agency notes. At the time of publication, the cryptocurrency is trading in the plus by almost 2%, its value has overcome the mark of $69 thousand, according to data from Coinmarketcap.

Coinbase investors, after yesterday's collapse, apparently decided that the worst-case scenarios have already been factored into the price, Bloomberg notes. Before dropping 7.9% ahead of the February 12 earnings release, Coinbase shares had been trading in the red for the past few weeks amid deteriorating investor sentiment toward cryptocurrencies. They have lost about 50% over the past year.

"We certainly can't predict the bottom of the crypto market, but from a fundamental point of view, there were some positives in this [Coinbase] report that were probably overlooked - for example, 12 different products with revenues over $100 million each," Dolev noted (quoted by Bloomberg).

Also, the rise in Coinbase's share price, among other things, can be attributed to comments Coinbase CEO Brian Armstrong made on the U.S. cryptocurrency bill during the company's earnings call, says Benchmark analyst Mark Palmer. During that call, Armstrong said, among other things, that he is "more optimistic than ever" about the future of Coinbase and the cryptocurrency market as a whole. "We've been through cycles [of decline] like this many times before," he said, emphasizing that cryptocurrency adoption continues to grow. "There will be regulatory clarity in the near future," he also added (quoted by Yahoo Finance).

At issue is the Stablecoin bill currently being debated in Washington, which could, if passed, limit the ability of exchanges to charge holders of this cryptocurrency any form of interest, yield, or reward tied to a stablecoin balance. In January, Coinbase withdrew its support for the bill, saying that "a bad bill would be preferred by the company over no bill."

"Given that Coinbase has so far objected to the bill because of its prohibition on charging interest on stablecoins, [Armstrong's] comments offer hope in these challenging times for the cryptocurrency market in general and the company's stock in particular," Palmer said.

In a report released on Feb. 12, Coinbase said its revenue for the fourth quarter of 2025 fell 20 percent to $1.8 billion, compared to data from the same period last year. And it also recorded a net loss of $667 million after accounting for an unrealized loss related to the decline in the value of cryptocurrency assets and investments.

Dan Dolev of Mizuho Securities, despite the latest dynamics of Coinbase shares, kept a "neutral" rating for them, Bloomberg writes. A total of 38 analysts are watching the company's shares, according to MarketWatch data. 24 of them recommend buying crypto exchange securities (ratings "Buy" and "Overweight"), 11 offer to hold, and three - to sell.

This article was AI-translated and verified by a human editor