Coinbase's profitability surge is underpinned by secular crypto tailwinds and a shift to high-margin, recurring revenue streams beyond trading. Dominance in ETF custody, rapid Base adoption, and USDC/derivatives growth anchor predictable, diversified revenue, reducing reliance on volatile retail trading. Financials are robust: a fortress balance sheet, expanding margins, and recurring revenues now cover fixed costs regardless of crypto market cycles.
The brokerage will allow European customers to trade more than 200 U.S. stocks and ETFs as digital tokens and is developing its own blockchain.
Crypto stocks COIN, HOOD, HUT, IREN, MARA rally as Trump's ceasefire deal, a new Senate bill to reduce SEC oversight and stablecoin bill fuel sector optimism.
Upgrading Galaxy Digital to Buy after recent pullback, as risk-reward has improved and technicals look supportive for a new uptrend. Helios data center transition offers stable, high-margin recurring revenue, reducing reliance on volatile crypto markets and boosting long-term sustainability. Valuation is reasonable at current levels, with potential for 36-37% upside if crypto market sentiment improves.
As Bitcoin rebounds past $105K after a ceasefire, CME, ACN, V and PYPL emerge as crypto-centric stocks with upside potential.
Coinbase is set to benefit from stablecoin adoption and its strategic partnership with Circle, driving stable, recurring revenue growth. The company's shift toward subscriptions and services, especially via Coinbase Base, diversifies its business beyond volatile trading fees. Despite competitive risks and margin pressures, my valuation of $394 per share offers a 28% premium, with an 86% probability of upside.
Coinbase is evolving from a trading platform to a comprehensive crypto payments and financial services provider, with stablecoins at the core of its growth strategy. USDC stablecoin adoption is driving significant revenue growth and diversification, reducing Coinbase's reliance on volatile transaction fees. The GENIUS Act offers regulatory clarity for stablecoins, removing a major risk and unlocking further growth potential for Coinbase's stablecoin business.
Coinbase delivered respectable YoY revenue growth despite Q1 headwinds, with strong performance in subscription and services revenues, especially from stablecoin. QoQ transaction revenue declines appear temporary, as the rebound in crypto prices should drive stronger results in upcoming quarters. Valuation remains attractive, with the P/S ratio well below early 2024 highs, presenting a favorable entry point for investors.
The shares of USDC stablecoin parent Circle Internet Group Inc (NYSE:CRCL) were last seen up 22.4% to trade at $182.50.
The debut of American Bitcoin, a mining firm backed by Eric Trump and Donald Trump Jr., has heightened the ethical concerns swirling around the Trump presidency.
Cryptocurrency exchanges Coinbase and Gemini are reportedly on the verge of being licensed in Europe. [contact-form-7] That's according to a report Friday (June 13) by Reuters, which noted that the companies are reaching this milestone amid contention among European Union (EU) regulators over how quickly and easily some countries are granting such licenses.
Cryptocurrencies fell Friday after Israel launched a wide-ranging strike on Iran and its nuclear program.