Trading in Coinbase shares took off in pre-market following its partnership announcement with Google, only to surrender those gains shortly after the open.
Shares in the exchange were trading at $$65.80 at the time of writing, after closing at $67.04 on Monday.
The stock traded up in pre-market trading, reaching highs of $69.42 before whipsawing at the open before trending downwards, according to Nasdaq data via TradingView.
The move comes shortly after Coinbase and Google revealed plans for a strategic partnership, allowing select Google Cloud customers to pay services using crypto starting from early 2023. In turn, Coinbase plans to use Google Cloud to process blockchain data and Google’s fiber-optic network to improve its global reach.
Google will also use Coinbase Prime for its institutional offering, another vote of confidence in the exchanges product following BlackRock’s announcement in August.
Shares in the exchange have come under increasing downward pressure through a variety of factors, including increased competition and worsening macroeconomic conditions — noted by Wells Fargo in September and Goldman Sachs throughout the summer.
Exchange volumes in North America have also fallen throughout the year and throughout the crypto winter as opportunities to acquire new users become slimmer exchanges have begun to lower fees or even remove them entirely.
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