Coinbase Stock Jumps as CEO Downplays Crypto Market Slump

Coinbase shares rose in pre-market trading on March 5 after CEO Brian Armstrong downplayed the crypto market slump, calling it 'psychological' rather than driven by fundamentals.

Armstrong made this statement during Coinbase's fourth-quarter earnings call, where the company reported revenue of $1.78 billion, missing analyst expectations of $1.83 billion. Earnings per share (EPS) also fell short of Wall Street estimates at $0.66 versus the expected $0.96.

The CEO emphasized that stablecoin adoption is continuing to grow and other indicators are positive, including users on Coinbase who remain net buyers despite a drop in prices since October.

Coinbase plans to use the dip to continue buying Bitcoin and repurchasing shares. The company's stock gained more than 4.2% in pre-market trade following a near 8% drop ahead of earnings, and was among the top trending tickers on Stocktwits.