Benzinga - by Shanthi Rexaline, Benzinga Editor.
Shares of cryptocurrency exchange Coinbase Global, Inc. (NASDAQ:COIN) rose sharply in premarket trading on Wednesday.
The positive performance could be attributable to sympathy move in lockstep with retail trading giant Robinhood Markets, Inc. (NASDAQ:HOOD), which reported a surprise fourth-quarter profit and better-than-expected fourth-quarter revenue.
The company said transaction-based revenue climbed 8% year-over-year to $200 million, primarily driven by 10% growth in cryptocurrencies revenue growth.
Robinhood’s strong cryptocurrency-related transaction revenue may prompt traders to factor in a similarly solid performance for Coinbase as well.
The crypto exchange is scheduled to report its quarterly results on Thursday after the market close. Cryptocurrencies began to rally in the fourth quarter amid expectations of approval for a spot Bitcoin exchange-traded fund, which eventually came through in January.
Bitcoin (CRYPTO: BTC), the apex crypto, jumped 57% in the fourth quarter.
In premarket, Coinbase shares jumped 7.78% to $151.31, according to Benzinga Pro data.
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