The value of Coinbase Global's stock has increased significantly, despite the unpredictable nature of the cryptocurrency market and the challenge of predicting the company's finances. The recent partnership with BlackRock, who have applied to launch a bitcoin-backed exchange-traded fund with Coinbase as its custodian, has contributed to the rise in value.

However, the Securities and Exchange Commission's lawsuit against Coinbase, calling for it to stop trading at least 13 digital assets, poses a significant risk. Coinbase's CEO, Brian Armstrong, has been lobbying lawmakers to limit the SEC's ability to regulate crypto. Despite the potential revenue of $88 million per year from its role as a custodian for bitcoin ETFs, this is relatively small compared to the company's current enterprise value of $24 billion.

Additionally, Coinbase's revenue is threatened by regulators' claims that its rewards programme for customers who "stake" their bitcoin may be illegal. The company's surging valuation may be due to investor optimism following a recent ruling in favour of cryptocurrency firm Ripple Labs in a securities lawsuit.