Block, Inc., the company behind payment processor Square, music streaming service Tidal and bitcoin funding initiative Spiral, among other subsidiaries, has surpassed Coinbase in market capitalization for the first time since March.
Coinbase shares fell this week as prices in the cryptocurrency market plummeted, recording its worst week of the year so far. Coinbase surpassed Block Inc. in market capitalization for the first time in March, according to data from The Block.
Meanwhile, analysts at investment bank Barclays adjusted the company’s stance on Coinbase from Under Weight, meaning it is expected to underperform other companies in the sector over the next 12 months, to Equal Weight, according to Benzinga. Barclays argued that a maturing regulatory environment, continued diversification, and strong industry leadership show the company is maturing with reliable revenue.
The bank, however, lowered its price forecast for Coinbase shares to $169 from $206. Coinbase shares hit a year-to-date high of $279.71 on March 25 and closed at $147.35 on Friday.
Coinbase won a narrow victory last week when a New York judge ordered the SEC to grant Coinbase access to certain documents related to the agency’s litigation with the company; however, the exchange’s attempt to subpoena SEC Chairman Gary Gensler was rejected.
“While we may have withdrawn a particular request and the judge recognized some reasonable limits, this was an order granting the core of discovery we have been seeking for months,” Paul Grewal, Coinbase’s general counsel, told The Block.
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