Anushka Basu
2 min read
In This Article:
Coinbase Global Inc (NASDAQ: COIN) opened low on Thursday and was down more than 5% in early trading after CEO Brian Armstrong shared a ransomware update. Armstrong took to X to openly address the hackers who wanted $20 million in Bitcoin.
As of 9:56 a.m. EDT, Coinbase shares had dropped to $248.82, down 5.54% from the previous day, when shares closed at $263.41.
COIN shares opened at $256.50 and went down as far as $247.55 before leveling off. The stock is still up over 41% for the month, and 20.46% in the last five trading days, as per charts from Yahoo Finance.
The decline in the stock’s price after Armstrong announced that hackers tried to deceive some overseas support agents into receiving a bribe and the hackers then gained access to a limited amount of customer data, but no passwords, no funds, and no private keys were compromised.
While Armstrong has been praised for transparency due to his refusal to pay a ransom and offer a $20 million bounty for the attackers, his offering a bounty did not quiet any jitters within the market. One X user wrote, “Coinbase should offer something to affected users.”
As of the publication date, Coinbase has a total stock value of approximately $63.36 billion. Over the past year, its stock has traded as low as $142.58 and as high as $349.75.
Coinbase produces about $5.32 in profits per share of its stock. Investors are currently paying about 47 times that amount to purchase a share, indicating the expectation for future growth.
Coinbase is also going to be listed on S&P 500 on May 19. Investors seem to be evaluating the long-lasting impact to reputation and potential regulatory scrutiny of the breach in the long run.
Earnings will be released sometime during the week of July 30 - August 4, 2025, so we may have further clarity about the financial impacts of the incident by that time.
