The increasing share price is good news following a difficult year for Coinbase, which reported Q4 earnings that included a $2.6 billion net loss for 2022

In less than two weeks, Coinbase’s stock has surged nearly 56 per cent, surpassing over $83 per share, the highest in six months.

Coinbase’s recent recovery reflects a wider rally in the crypto market. On Sunday, Bitcoin broke $28,000 for the first time since June last year, as investors scrambled to the digital asset amid concerns of a banking crisis. Other crypto currencies are also higher, including Ether, the second-biggest crypto currency in terms of market capitalization and the native token for the Ethereum blockchain, which has advanced 20 per cent in less than two weeks.

The increasing share price is good news following a difficult year for Coinbase, which reported Q4 earnings that included a $2.6 billion net loss for 2022. Amid an extended Crypto Winter, the crypto currency exchange reported a 50 per cent drop in total trading volume compared with the previous year.

To state the obvious, 2022 was a challenging year for the crypto markets and our transaction revenues, Coinbase wrote in its shareholder letter.

The firm, headed by founder and CEO Brian Armstrong, also has been battling an increasingly aggressive regulatory landscape as the Securities and Exchange Commission (SEC) and the federal government have followed a widespread crypto clampdown after the sudden collapse of FTX.

In January, the Securities and Exchange Commission charged crypto companies Genesis and Gemini with selling unregistered securities through the firms’ yield-bearing product, Gemini Earn. In February, the rival crypto currency exchange Kraken then agreed to pay a $30 million fine and shut down its staking service, which the Securities and Exchange Commission alleged was more or less like selling unregistered securities.

And Coinbase, along with the wider crypto landscape, has also reckoned with the unforeseen disappearance of Silvergate and Signature, which once were the banks of choice for the industry.

But the recent recovery in crypto prices—and Coinbase’s stock—has enthusiasts optimistic that the enduring chill of Crypto Winter may soon recede.