The stock of cryptocurrency exchange Coinbase (NASDAQ: COIN) rallied 12% on Wednesday, January 4, with the equity attracting increased buying pressure. 

In particular, as of January 5, Coinbase had a market capitalization of $8.56 billion, representing an inflow of about $1.1 billion from the January 3 value of $7.46 billion. COIN has had an impressive start to the year after the stock plunged across 2022, weighed down by the crypto market meltdown. The ability of Coinbase to contain extended losses in 2022 was further invalidated after the collapse of its competitor FTX. 

Notably, Coinbase’s latest increase in the market cap can be attributed to the January 4 legal development where the company agreed on a settlement worth $100 million with the New York Department of Financial Services regarding compliance programs. Under the settlement, the crypto exchange will pay a $50 million fine alongside investing another $50 million into bolstering its compliance initiatives.

(By Paul L.)