Coinbase and Strategy Shares Rally Sharply Amid Risk Asset Rotation

Cryptocurrency-related stocks delivered some of the session's strongest performances as traders rotated into higher-risk assets, with Coinbase and Strategy leading the rally despite challenging fundamentals.

Coinbase shares jumped more than 18% as investors bought the recent dip in crypto exposure, even after the exchange reported a $666.7 million fourth-quarter loss—its first quarterly deficit in several periods. The losses stemmed from reduced trading activity as cryptocurrency transaction volumes declined. However, recurring revenue streams including stablecoin-related services demonstrated resilience^[1].

The stock has faced significant headwinds in early 2026, dropping approximately 34% year-to-date amid a broader digital asset selloff that saw Bitcoin fall roughly 30% over the past month. CEO Brian Armstrong recently divested over 1.5 million shares valued at about $545 million, characterizing the move as portfolio diversification^[1].

Strategy shares climbed around 10% in tandem with Bitcoin's price recovery. The company recently acquired more than 1,100 bitcoin for approximately $90 million at an average price in the high-$70,000 range. Strategy reported a multi-billion dollar quarterly loss driven largely by mark-to-market valuations on its extensive bitcoin holdings. Executive Chairman Michael Saylor reiterated the firm's long-term commitment to holding bitcoin through market volatility^[1].

Other sector participants including Circle and Galaxy Digital posted gains of 7% and 6.5% respectively^[1].