Crypto stocks rally up to 14% as earnings week draws near

Crypto-exposed equities surged Monday, with BMNR leading gains at nearly 14%, as investors positioned ahead of a packed earnings week for Robinhood, Coinbase and Strategy.

Robinhood Markets Inc. rose more than 3%, Coinbase Global Inc. gained nearly 6%, and Strategy added over 7% in US trading on July 27. Circle Internet Financial climbed more than 6%, while BMNR jumped almost 14%, according to market data. The broad-based rally came as traders priced in second-quarter reports due within 72 hours.

Robinhood reports first on Wednesday, July 29, with Zacks consensus calling for earnings of $0.39 per share on $1.22 billion in revenue, up 23.6% year over year. Crypto transaction revenue is projected at $83.5 million, down 47.8% from a year earlier, reflecting the broader market downturn in the second quarter. The firm cut 10% of its workforce in June, with about $20 million in severance costs expected to hit the quarter.

Coinbase follows Thursday after the close, with consensus at $0.15 per share on $1.31 billion in revenue, down 12.8% year over year. The stock dropped more than 16% in the second quarter as the exchange posted a $394 million net loss in Q1. Strategy, also reporting Thursday, pre-disclosed an $8.32 billion loss on digital assets for the quarter ended June 30, with its Bitcoin holdings carrying a fair value of $49.67 billion against a $63.94 billion cost basis.

The synchronized rally signals renewed conviction in crypto-exposed equities after a bruising second quarter. Bitcoin recovered 8.4% in July through Monday, while Strategy — which amplifies Bitcoin's moves — rebounded 12.5% over the same period. With three major reports landing within 30 hours, guidance may matter more than headline numbers in setting the tone for crypto stocks into August.

Earnings catalysts and analyst divergence

Analyst targets for the three firms span a wide range, reflecting uncertainty about the sector's trajectory. Bernstein raised its Robinhood target from $130 to $160 on July 20, while Goldman Sachs moved to $137. For Coinbase, Citi cut its target from $400 to $235 on July 24 while keeping a Buy rating, and Barclays holds a rare Sell with a $99 target implying roughly 41% downside. Strategy saw Citi nearly halve its target to $136 from $260.

The reports will test whether the July rally has fundamental support. Robinhood launched its own blockchain on July 1, which has since ranked among the top five chains by DEX volume, though its contribution will not appear in second-quarter results. Coinbase's subscription and services revenue guidance of $565 million to $645 million for Q2 will be a key metric to watch.

This article is for informational purposes only and does not constitute investment advice.