Coinbase Global Inc (NASDAQ: COIN) stock opened 30% up on Thursday after BlackRock announced a partnership with the crypto exchange that will offer its institutional investors access to Bitcoin.
Brief overview of the announced partnership
The asset manager was “studying” crypto and related technologies in recent months to better serve its customers that have been getting interested in crypto.
The partnership with Coinbase, will secure access for its institutional investors to crypto trading, custody, prime brokerage, and reporting capabilities. In a written statement, Joseph Chalom – Global Head of Strategic Ecosystem Partnerships at BlackRock said:
Our institutional clients are increasingly interested in gaining exposure to digital assets. The partnership will let them manage their Bitcoin exposure directly in their existing portfolio management and trading workflows.
Coinbase to report Q2 results next week
Coinbase Global is expected to report its results for the fiscal second quarter on August 9th. Consensus is for it to lose $3.04 a share (down 147% YoY) on $877.32 million in revenue (down 60% YoY).
Heading into the earnings print, Wall Street has a consensus “overweight” rating on Coinbase stock that’s down more than 50% for the year, even though it has roughly doubled in about a week as Bitcoin and Ethereum continue to bounce off their lows.
The rally might also be related to a short squeeze. “COIN” is the most mentioned stock on WallStreetBets (Reddit) this morning. In June, Coinbase said it’s cutting its workforce by 18% to minimise costs amidst a looming recession.
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