Block, Inc. Surpasses Coinbase in Market Capitalization

Block, Inc., the parent company of payment processor Square, music streaming service Tidal, and bitcoin funding initiative Spiral, has surpassed Coinbase in market capitalization for the first time since March.

Coinbase’s stock experienced a decline this week amid falling crypto prices, marking its worst week of the year. According to data from The Block, Coinbase had previously surpassed Block, Inc. in market capitalization earlier this year in March.

In the meantime, analysts at investment bank Barclays updated their stance on Coinbase, moving from ‘Under Weight’, indicating expected underperformance relative to industry peers over the next 12 months, to ‘Equal Weight.’ They noted the maturing regulatory environment, steady diversification, and strong industry leadership suggest the business is maturing with reliable revenues.

However, Barclays also lowered its price forecast for Coinbase shares from $206 to $169. Coinbase’s stock reached a year-to-date high of $279.71 on March 25 but closed at $147.35 on Friday.

Last week, Coinbase achieved a minor victory when a New York judge ordered the SEC to provide access to specific documents concerning the agency’s litigation with the exchange; however, their attempt to subpoena SEC Chair Gary Gensler was denied.

Paul Grewal, Coinbase’s Chief Legal Officer, stated, “While it may be the case that we withdrew one particular request, and the judge recognized certain reasonable limits, this was an order granting the heart of the discovery that we have been seeking for months.”