Coinbase Stocks Surge on New Mortgage Product and Bitcoin Breakout
Coinbase (NASDAQ:COIN) shares jumped 5.1% in afternoon trading after the company and Better Mortgage announced a nationwide token-backed mortgage product.
The product allows eligible borrowers to pledge Bitcoin or USDC as collateral to fund a cash down payment without selling their tokens, according to a press release from Better Mortgage.
Coinbase holds and transfers the pledged crypto, while Better originates and services the loan. The first lien remains a standard conforming mortgage.
The news comes as Bitcoin trades near $78,000, with Coinbase's shares also benefiting from the cryptocurrency's rise.
Analysts note that Coinbase's shares are extremely volatile, having had 54 moves greater than 5% over the last year. Today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.