Donald Trump has announced plans to meet with Coinbase Global (COIN) CEO Brian Armstrong about a cabinet position. This comes just after the crypto exchange’s executive praised Trump’s planned Department of Government Efficiency (DOGE) as the “key to U.S. economic freedom.” This new government agency will be run by Elon Musk and former GOP presidential candidate Vivek Ramaswamy and will focus on reducing federal spending.
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Now, it seems that Armstrong’s support of it may lead to him landing a prominent role in Trump’s administration.
What’s Happening with Coinbase Stock?
Since this news broke late this afternoon, it hasn’t impacted Coinbase share prices too much. COIN stock closed out today in the green and is currently rising in after hours trading, though its gains are less than 1% as of this writing. That said, the past week has been difficult for Coinbase. Although Trump’s victory is widely seen as a bullish indicator for crypto markets, COIN stock has been volatile over the past five days and is still down 1%, despite today’s bump.
News of Armstrong’s potential White House appointment is likely to keep pushing COIN stock up in the short term. Tesla (TSLA) stock has been rising steadily since Trump’s presidential victory, due primarily to Musk’s close relationship with Trump. Now if Armstrong is on the verge of enjoying the same status, COIN stock could be in for the Tesla treatment, meaning significant growth over the coming months.
As the Wall Street Journal reports, Trump’s meeting with Armstrong would “mark the first time the two have met since Election Day.” The incoming President may be considering appointing Armstrong to lead the presidential advisory council on crypto that he promised to create after being elected. At this time, few other details have been provided regarding the meeting or Trump’s plans.
Wall Street Remains Sidelined on Coinbase Stock
Turning to Wall Street, analysts have a Moderate Buy consensus rating on COIN stock based on nine Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 207% rally in its share price over the past year, the average COIN price target of $255.63 per share implies 21% downside potential.
