COIN Soars on Direct IPO Allocation, But Momentum Falters
Coinbase's stock price surged after the company announced that eligible U.S. retail investors can now request IPO allocations directly through its app, sending shares up 11.7% in a single session.
The move is seen as tangible proof of CEO Brian Armstrong's 'Everything Exchange' thesis, where Coinbase is no longer just a fee-dependent brokerage but a diversified exchange with various revenue streams.
The company's Q2 subscription and services revenue hit $555 million, accounting for 48% of net revenue, while prediction-market contract revenue surged 106% quarter-over-quarter. Bitcoin-related transaction revenue now represents only 12% of total company revenue, down from over 50% not long ago.
The technical setup is leaning bullish, with COIN trading above its 50-day and 20-day simple moving averages, but the momentum is hesitating at a near-zero histogram reading. The stock is pressing against its Bollinger Band upper boundary, and the Stochastic %K is flashing overbought conditions.