Coinbase Global (COIN) AI Stock Analysis

• Market Cap: $67.87B
• Dividend Yield: N/A
• Average Volume (3M): 12.78M
• Price to Earnings (P/E): 49.9
• Beta (1Y): 2.83
• Revenue Growth: 48.30%
• EPS Growth: 5.09%
• Country: US
• Employees: 3,772
• Sector: Financial
• Sector Strength: 85
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.24
• Shares Outstanding: 211,407,410
• 10 Day Avg. Volume: 21,636,551
• 30 Day Avg. Volume: 12,777,865
• PEG Ratio: 0.31
• Price to Book (P/B): 4.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.87
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 8.69
• Enterprise Value/Ebitda: 6.12
• 1Y Price Target: $261.50
• Price Target Upside: -1.86% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22

Coinbase Global demonstrates strong financial performance and strategic growth initiatives, particularly in the derivatives market and international expansion. The high valuation and potential market volatility present risks but are balanced by positive earnings call insights and robust cash flow management. Technical indicators suggest mixed momentum, warranting cautious optimism.

Positive Factors

Earnings Growth

Analyst expects Coinbase's earnings per share to grow at a compound annual growth rate of around 38%, significantly outpacing market consensus for future estimates.

Market Position

Coinbase remains the dominant platform with 66% U.S market share, supported by the aspiration to make America the ‘crypto capital of the world’.

S&P 500 Inclusion

Coinbase Global (COIN) reached a major milestone with its addition to the S&P 500, which initially caused COIN shares to jump by 24%.

Negative Factors

Cybersecurity Breach

Coinbase Global disclosed a significant cybersecurity breach and confirmed an ongoing SEC investigation regarding its past user metrics.

Data Security Concerns

COIN revealed that cybercriminals had bribed a small group of overseas customer support contractors to access sensitive customer data.

Remediation Costs

The breach affected less than 1% of COIN’s monthly transacting users, estimated to be approximately 97k customers, and the company expects to incur costs of between $180m and $400m related to remediation efforts and customer reimbursements.

Coinbase Global Business Overview & Revenue Model

Company Description

Coinbase Global, Inc. is a leading American company in the cryptocurrency industry, providing a secure and user-friendly platform for buying, selling, and managing digital currencies. Founded in 2012, Coinbase operates in the financial technology sector, focusing primarily on enabling access to a wide range of cryptocurrencies for retail and institutional investors. The company's core products and services include a cryptocurrency exchange, a digital wallet, and various tools for merchants and developers to conduct transactions using digital assets.

How the Company Makes Money

Coinbase Global makes money primarily through transaction fees charged on its cryptocurrency exchange. The company generates revenue by taking a percentage fee on trades conducted by users on its platform, which can vary depending on the size of the transaction and the user's location. In addition to transaction fees, Coinbase earns from subscription and services revenue, which includes services like Coinbase Custody for institutional clients, staking services, and earning interest on certain digital assets. The company also benefits from partnerships with various financial institutions and blockchain projects, contributing to its earnings by providing technological solutions and infrastructure support. Significant market volatility and increased interest in cryptocurrencies can significantly influence Coinbase's revenue, as more trading activity leads to higher transaction fee income.

Coinbase Global Financial Statement Overview

Summary

Coinbase Global has shown significant improvement in its financial performance, particularly in revenue growth and profitability margins. The balance sheet reflects a healthy leverage position with a Debt-to-Equity Ratio of 0.44 and strong equity base, though asset reductions may need attention. Cash flow metrics are robust, highlighting the company's ability to generate cash effectively.

Income Statement

Coinbase Global has demonstrated strong revenue growth, with Total Revenue increasing significantly from $3108 million in 2023 to $6564 million in 2024, a growth rate of 111%. The Gross Profit Margin was high at 86.3% in 2024, indicating efficient cost management. However, the company experienced volatility in profitability with a Net Profit Margin of 39.3% in 2024, which is an improvement from previous losses. The EBIT and EBITDA margins also improved positively to 35.1% in 2024.

Balance Sheet

The Debt-to-Equity Ratio was 0.44 in 2024, reflecting a balanced leverage position. Return on Equity (ROE) was 25.1%, indicating strong profitability relative to shareholder equity. The Equity Ratio was 45.6%, showing a solid equity foundation. However, the company’s Total Assets have decreased compared to prior periods, which could pose a challenge for future growth.

Cash Flow

Coinbase Global showed strong cash flow performance with a Free Cash Flow of $2556 million in 2024, improving from $860 million in 2023. The Operating Cash Flow to Net Income Ratio was 0.99, indicating efficient cash generation relative to earnings. The Free Cash Flow to Net Income Ratio was also favorable at 0.99, suggesting strong cash flow conversion from profit.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.56B	3.11B	3.19B	7.84B	1.28B
	Gross Profit
5.67B	2.69B	2.56B	6.57B	1.14B
	EBIT
2.31B	-161.66M	-2.67B	3.08B	408.95M
	EBITDA
3.12B	25.21M	-2.82B	3.14B	464.93M
	Net Income Common Stockholders
2.58B	94.87M	-2.62B	3.62B	322.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.82B	10.29B	5.29B	7.22B	1.11B
	Total Assets
22.54B	206.98B	89.72B	21.27B	5.86B
	Total Debt
4.53B	3.06B	3.49B	3.49B	107.78M
	Net Debt
-4.22B	-2.08B	-935.28M	-3.63B	-954.07M
	Total Liabilities
12.27B	200.70B	84.27B	14.89B	4.33B
	Stockholders Equity
10.28B	6.28B	5.45B	6.38B	1.53B
Cash Flow		Free Cash Flow
2.56B	859.75M	-1.65B	10.64B	2.99B
	Operating Cash Flow
2.56B	922.95M	-1.59B	10.73B	3.00B
	Investing Cash Flow
-282.38M	5.39M	-663.82M	-1.12B	50.82M
	Financing Cash Flow
2.83B	-811.33M	-5.84B	3.28B	18.80M

Coinbase Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 266.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COIN, the sentiment is Positive. The current price of 266.46 is above the 20-day moving average (MA) of 211.55, above the 50-day MA of 193.34, and above the 200-day MA of 225.53, indicating a bullish trend. The MACD of 16.01 indicates Negative momentum. The RSI at 70.41 is Negative, neither overbought nor oversold. The STOCH value of 88.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COIN.

Coinbase Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COIN	74 Outperform	$67.87B	49.93	15.83%	―	48.30%	5.09%
GRND	73 Outperform	$4.60B	―	-63.52%	―	30.08%	-196.62%
GRAB	67 Neutral	$20.74B	908.93	0.38%	―	17.24%	―
SPT	65 Neutral	$1.39B	―	-36.95%	―	17.79%	16.49%
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%
RIOT	62 Neutral	$3.27B	24.36	-14.71%	―	59.99%	-283.24%
MSTR	55 Neutral	$109.31B	―	-29.68%	―	-6.19%	-3736.55%

Coinbase Global Corporate Events

Coinbase Acquires Deribit in Major Cryptocurrency Deal

On May 8, 2025, Coinbase Global, Inc. entered into a Share Purchase Agreement to acquire all outstanding shares of Deribit, a Netherlands-based company, for $700 million in cash and nearly 11 million shares of Coinbase’s Class A common stock. This acquisition, pending regulatory approvals and other conditions, aims to strengthen Coinbase’s market position and expand its offerings in the cryptocurrency space, with significant implications for stakeholders, including a lock-up arrangement for certain Deribit shareholders and a potential $100 million termination fee if regulatory approvals are not obtained by November 8, 2025.

Spark’s Take on COIN Stock

According to Spark, TipRanks’ AI Analyst, COIN is a Outperform.

Coinbase Global shows strong financial performance with significant revenue growth and profitability improvements. The technical indicators show mixed signals, warranting caution. Valuation is reasonable, but the lack of a dividend might deter some investors. The earnings call highlighted positive future prospects, although concerns about declining stablecoin revenue and rising expenses should be monitored.

To see Spark’s full report on COIN stock, click here.

Coinbase Global Reaches Agreement with SEC on Litigation

Coinbase Global faced legal action from the SEC beginning in June 2023, with allegations of operating an unregistered securities exchange and offering unregistered securities. On February 21, 2025, Coinbase announced an agreement in principle with the SEC to dismiss the litigation, pending approval from the SEC’s Commissioners, marking a significant development in its ongoing legal challenges.