Bold morning shift: crypto-linked stocks like Coinbase (COIN) and Strategy (MSTR) led a broad market move today as investors rotated into riskier assets. While the Dow and S&P 500 traded mixed on inflation and economic data, digital-asset exposure helped several high-beta names post strong gains.
Coinbase stood out, jumping more than 18% for the session and outperforming many traditional tech shares as traders bought the dip in crypto exposure.
This surge came despite a challenging earnings backdrop: Coinbase reported a $666.7 million loss for Q4 2025, its first quarterly deficit in several quarters, driven by weaker trading revenue amid softer crypto volumes. Long-term revenue streams such as subscriptions and services, especially stablecoin revenue, provided some ballast for sentiment.
Over the past few months, Coinbase shares have weakened as the broader crypto market weakened and analysts grew more cautious. Monness Crespi & Hardt downgraded COIN from buy to neutral, setting a $120 target and flagging downside risk tied to softer market conditions. The stock has slumped roughly 34% in 2026 so far, with Bitcoin dipping about 30% in the last month and altcoins suffering steeper losses. Lower crypto prices have reduced trading volumes, squeezing one of Coinbase’s main revenue drivers.
Additionally, Coinbase CEO Brian Armstrong sold more than 1.5 million shares valued at about $545 million, framing the move as diversification rather than a shift away from the business.
Strategy (MSTR) also posted upside, rising about 10% in tandem with a rebound in Bitcoin prices. Strategy’s shares have moved in tandem with Bitcoin, suffering during the broader crypto sell-off and then recovering as markets stabilized.
Despite the volatility, Strategy reaffirmed its commitment to expanding its bitcoin treasury. The firm disclosed another purchase of more than 1,100 BTC this week, spending roughly $90 million at an average price in the high-$70,000 range.
The company also reported earnings that underscored the risk of a bitcoin-heavy balance sheet. It posted a multi-billion-dollar quarterly loss largely tied to mark-to-market declines on its bitcoin holdings, highlighting how price downturns can weigh on reported results even as the firm maintains a long-term hodl posture.
Executive Chairman Michael Saylor continued to publicly defend the strategy, reiterating that Strategy does not plan to sell bitcoin during downturns and arguing that the company is positioned to weather extended Bitcoin volatility.
Other crypto-related stocks also advanced today, with Circle (CRCL) up about 7% and Galaxy Digital (GLXY) up roughly 6.5%, signaling continued sector momentum.
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