The leading U.S. crypto exchange Coinbase (NASDAQ: COIN) has seen its share price skyrocket to over $200, marking a +12% increase, as Donald Trump seems to become the winner of the US elections. the crypto exchange positioned itself as a major player in the 2024 U.S. elections. This surge reflects not the company’s financial performance but the expected crypto regulation under President Trump.
The Coinbase Strategy: Buying Political Influence
Under Brian Armstrong‘s leadership, Coinbase has emerged as a formidable force in political donations, contributing over $52 million to political campaigns in 2024 alone. The company’s approach was multifaceted:
- Super PAC Investments: Coinbase has poured $23.5 million into Fairshake, a crypto-focused super PAC, with Armstrong personally adding $1 million. This makes Fairshake one of the largest super PACs in the 2024 election cycle, having raised over $200 million.
- Bipartisan Approach: Rather than backing specific presidential candidates, Coinbase was focusing on congressional races across party lines. This strategy aims to cultivate a pro-crypto legislative environment regardless of which party controls Congress.
- Grassroots Mobilization: The company has launched “Stand With Crypto,” a movement claiming over 1.3 million advocates, to mobilize public support for crypto-friendly legislation.
The Impact: Reshaping the Political Landscape
Coinbase‘s aggressive political strategy is yielding results:
- Fairshake claims victories in 36 out of 42 primary races it has entered.
- Both major presidential candidates have made positive statements about crypto, with Trump vowing to make America the “crypto capital of the planet” and Harris pledging to encourage digital asset innovation.
- The crypto industry has become the third-largest source of super PAC funding in the 2024 election cycle, behind only pro-Trump and Democratic Senate campaign PACs.
The Controversy: Corporate Influence in Politics
Critics argue that Coinbase’s massive political spending sets a troubling precedent. Public Citizen has described it as a “corporate Death Star” looming over elections. Concerns are amplified by the fact that four of the eight corporate crypto super PAC donors have settled or are facing charges from the SEC.
The Market Response
Despite recent volatility, including a 14.3% drop following a disappointing earnings report, analysts remain optimistic about Coinbase‘s long-term prospects. The company’s political investments are seen as a strategic move to secure a favorable regulatory environment, potentially driving future growth.
Looking Ahead: The Crypto Voter Phenomenon
Armstrong has boldly claimed that opposing cryptocurrencies could lead to “political suicide,” suggesting a growing “crypto voter” base. As the election approaches, the impact of Coinbase‘s political strategy on both its share price and the broader crypto regulatory landscape will be closely watched.
Coinbase‘s share price surge reflects not just market performance, but the company’s ambitious bid to shape the political future of cryptocurrency in the US under Donald Trump. As the lines between corporate influence and political policy continue to blur, the outcome of this high-stakes gamble will likely have far-reaching implications for the crypto industry and American politics alike.
