Coinbase: Buy On Growing Revenue Streams

Summary Coinbase Global is positioned as a leader in digital finance, evolving beyond a simple crypto trading platform. Coinbase's strategic acquisition of Deribit and investment in CoinDCX drive growth in derivatives and global markets, especially ￰0￱ and subscription revenue are rapidly expanding, providing a hedge against crypto market volatility and boosting recurring income for Coinbase. I rate Coinbase stock a buy, expecting strong Q3 earnings and long-term upside despite ongoing volatility and regulatory ￰1￱ assets are steadily moving from speculation to mainstream adoption in the investment ￰2￱ Global ( COIN ) stands at the center of this transformation, especially as a trusted and regulated crypto exchange in the United ￰3￱ has evolved far beyond its origins as a simple trading platform and now offers products and services to consumers, institutions, and ￰4￱ stock became public just under five years ago and has already made its way into the S&P ￰5￱ company felt like somewhat of a proxy to the crypto market years ago but now has quickly turned into an investment in the future of digital ￰6￱ Alpha It has been a pretty volatile few years since the ￰7￱ is up 10x since its low in January 2023 and is up 45% YTD.

I rate COIN a ￰8￱ are expected to be strong, and several strategic moves are positioning the digital finance firm nicely in this fast-changing ￰9￱ and global growth will help COIN strategically, and their surge in stablecoin and subscription growth is a great hedge to the volatile down times in the digital asset ￰10￱ Preview First half 2025 was $5.38 versus first half of 2024 at $4.54, an 18% ￰11￱ earnings have been very sporadic but have trended in the right direction after quarters of being unprofitable through 2022 and ￰12￱ the upcoming Q3 report, it is anticipated that they will report EPS of $1.06, which would be 71% higher ￰13￱ is expected to be 44% higher, and EPS estimates have trended 2.6% higher in the last ￰14￱ the last 3 months, 18 out of 20 Seeking Alpha analysts have given COIN an upward EPS ￰15￱ company has missed on 3 of the last 5 earnings, but I think they will bring strong results this time ￰16￱ is why I believe that will be the case and why I am bullish on ￰17￱ Moves COIN closed on their acquisition of Deribit in August, the world’s leading crypto options ￰18￱ has about $60 billion of current open interest and traded over $1 trillion last ￰19￱ of this year was the record in trading volume, and COIN is taking over at peak timing to capture growth in the crypto derivative ￰20￱ crypto derivative market is a rapidly growing space in the digital asset ￰21￱ the Q3 report for COIN, it will include consolidated results from Deribit, but just for the second half of ￰22￱ won’t bring a full picture yet but will help give ￰23￱ example, Deribit had $30 million in July transaction revenue, and the deal is also expected to contribute around $10 million in additional development expenses.

a16z crypto COIN is a powerhouse in the U. S., with about 75% market share of centralized crypto exchanges. Globally, they have a much weaker grip, as seen in the chart above, where global peers have much higher trading ￰24￱ attempts to work on growing their footprint, COIN has invested in CoinDCX , a leading crypto exchange in India and the Middle ￰25￱ is a retail-focused platform with over 20 million ￰26￱ regulation has made operating in India challenging, so this investment will help them gain indirect market exposure to one of the fastest growing crypto markets in the ￰27￱ are over 100 million crypto owners in ￰28￱ now, COIN has 83% of their revenue in the United States, and management has made it clear one of their most important strategies moving forward is gaining global ￰29￱ this is not direct, it’s a start while still navigating the ever-challenging regulations the industry ￰30￱ the investment, CoinDCX is estimated to be valued at about $2.45 ￰31￱ a16z crypto We all know how volatile crypto can be, which is likely why the growth of stablecoins is dramatically increasing.

A stablecoin is a type of cryptocurrency that is pegged to a specific asset but provides much more price stability and less ￰32￱ has been $46 trillion in transaction volume in the last year for stablecoins, up 106% ￰33￱ popularity is so rapid that stablecoins are now among the world’s largest payment ￰34￱ saw their stablecoin revenue jump from $240.4 million to $332.5 million ￰35￱ of stablecoins are in USD, and the USDC stablecoin backed by the ￰36￱ is being seen as a safe hedge to inflation while also remaining part of the ￰37￱ are projected to grow by 10x until 2030, and COIN will keep seeing their sales increase in this segment for years to ￰38￱ Volumes and Stock Price TradingView Trading volumes for crypto saw a surge in 2021, a drop and lull through 2023, and now another spark over the last two ￰39￱ COIN joined the market amidst the initial charge in 2021, the stock has very closely followed suit with the overall trading volume for ￰40￱ course, this shouldn’t be surprising, as they make a lot of their revenue through transactions and ￰41￱ will always be volatile for digital assets, as prices move quickly and investors come and go more than other security ￰42￱ easing crypto regulations, especially in the U.

S., and growing institutional adoption of crypto-type investments make me believe this volume will continue to move higher over time, a great sign for ￰43￱ top of that, a growing segment of business for COIN is their subscription and services ￰44￱ in paid subscribers is a great opportunity for COIN to gain sales on top of their transaction ￰45￱ chunk of their business was $331 million in ￰46￱ first half of 2025, they had $1.35 billion in sales for this segment from rapid growth in stablecoin and other subscription ￰47￱ year-end 2024, COIN had more than 600,000 paid ￰48￱ have put themselves in a good position to create revenue through multiple ￰49￱ to Thesis Backlinko Verified users on Coinbase are up, but transacting users have been up and down over the last few years.

I would hope for this to more consistently trend upwards in the ￰50￱ regulation will always be a risk, but it does seem to be slowly improving throughout the world, and COIN is finding ways to hedge the challenge, like with their investment in ￰51￱ will fluctuate for COIN, as transactional volume does for crypto, but their growth in their subscription and services side is a great addition to bolster other revenue growth in lower volume periods for digital ￰52￱ This stock will have a tendency to be volatile for the foreseeable ￰53￱ you’re willing to stomach a few extra bad days, I think the long-term outcome for COIN looks promising. I like their ability to create more revenue through subscriptions and stablecoin and think they are making strong moves with adding to their derivative portfolio and attempt at indirect growth in India.

I expect nice results in Q3 earnings this week and strong returns for the stock well into the future.