Coinbase Global Stock: Buy, Sell, or Hold?

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Cryptocurrency markets have surged over the past year, and Coinbase Global (NASDAQ: COIN) has been one of the biggest beneficiaries. The stock has more than doubled in value over the last 12 months, driven by a confluence of macroeconomic shifts, regulatory progress, and renewed investor enthusiasm for digital assets. With Bitcoin surpassing $100,000 and institutional adoption accelerating, many investors are asking: Is now the right time to buy, sell, or hold Coinbase stock?

Let’s dive into the company’s business model, recent performance, valuation, and long-term outlook to help you make an informed decision.

Understanding Coinbase’s Business Model

As one of the world’s leading cryptocurrency exchanges, Coinbase generates revenue primarily through transaction fees from trading activities. When users buy, sell, or trade digital assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), Coinbase earns a small percentage as revenue.

In the most recent reporting period:

Beyond trading, Coinbase is expanding into staking, lending, wallet services, and institutional solutions, diversifying its income streams. This evolution positions it not just as a trading platform but as a full-stack crypto financial ecosystem.

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A History of Boom and Bust

Coinbase’s financial performance closely mirrors the broader crypto market cycle.

In 2021, during the height of the bull run fueled by low interest rates, stimulus spending, and social media hype, Coinbase’s revenue surged by 514%. However, as inflation rose and central banks tightened monetary policy in 2022, the crypto market crashed — often referred to as a “crypto winter.” That year, Coinbase’s revenue plummeted by 59%.

The downturn continued into 2023, with revenue dipping slightly by 3%, as market sentiment remained cautious. But signs of recovery began emerging in the second half of the year.

The 2024 Rebound: Signs of a New "Crypto Summer"

The tide began turning in Q3 2023 as interest rates stabilized and speculation grew about future rate cuts. Investor confidence returned, especially after key developments in early 2024:

Here’s a look at Coinbase’s recent performance:

QuarterTrading VolumeTotal Revenue
Q3 2023$76 billion$674 million
Q4 2023$154 billion$954 million
Q1 2024$312 billion$1.64 billion
Q2 2024$226 billion$1.45 billion
Q3 2024$185 billion$1.20 billion

Source: Coinbase financial reports

While trading volume and revenue cooled slightly in Q2 and Q3 2024 — due to uncertainty around Federal Reserve policy and U.S. elections — Bitcoin rebounded strongly afterward, surpassing $100,000 by late 2024.

Analysts project:

Despite volatility, Coinbase has maintained positive adjusted EBITDA for seven consecutive quarters, thanks to aggressive cost-cutting measures. Adjusted EBITDA is expected to jump 196% to $2.85 billion in 2024, then stabilize in 2025 as reinvestment in product development increases.

Valuation: Is Coinbase Stock Overpriced?

With an enterprise value of approximately $65.4 billion, Coinbase trades at:

These multiples appear reasonable given its projected growth and leadership position in a high-potential industry. Compared to traditional financial platforms or fintech firms with similar growth trajectories, Coinbase remains competitively valued — especially if crypto adoption continues rising.

However, it's important to remember that these estimates hinge on continued momentum in the crypto market. Unlike traditional businesses, Coinbase’s fortunes are deeply tied to Bitcoin and Ethereum price movements, regulatory clarity, and macroeconomic conditions.

Key Considerations Before Investing

✅ Strengths

❌ Risks

Frequently Asked Questions (FAQ)

Q: Is Coinbase a good long-term investment?
A: It can be — if you believe in the long-term adoption of cryptocurrencies. As a top-tier exchange, Coinbase stands to benefit from increased usage, regulation, and integration into mainstream finance.

Q: How does Coinbase make money?
A: Primarily through transaction fees on trades. Additional revenue comes from staking rewards, subscription services (like Advanced Trade), and institutional custody solutions.

Q: What affects Coinbase’s stock price the most?
A: Bitcoin and Ethereum prices are the biggest drivers. Regulatory news, macroeconomic trends (like interest rates), and trading volume on its platform also significantly impact its valuation.

Q: Can Coinbase survive another crypto winter?
A: Yes. After layoffs and restructuring in 2022–2023, Coinbase improved profitability and now maintains positive EBITDA even during downturns.

Q: Should I invest in Coinbase or Bitcoin directly?
A: That depends on your risk tolerance. Bitcoin offers pure exposure to crypto price movements. Coinbase provides indirect exposure with operational leverage — higher upside in bull markets, but more business risk.

👉 Compare direct crypto investing vs. crypto stock exposure today.

Final Verdict: Buy, Sell, or Hold?

For investors bullish on cryptocurrency adoption:

For those skeptical about crypto’s staying power:

Personally, I lean slightly bullish on Coinbase — not because I expect explosive growth forever, but because the company has shown resilience and is well-positioned for continued digital asset expansion.

That said, if you’re seeking pure exposure to crypto’s upside, consider allocating part of your portfolio directly to Bitcoin or Ethereum via secure platforms.

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