Should I Buy Coinbase (COIN)? Finance YouTuber Analysis

The analyst argues that the market is misinterpreting the impact of the proposed stablecoin act. He believes that if the act passes, preventing Coinbase from paying out rewards on USDC, it will actually increase Coinbase's profitability by reducing expenses, despite management's desire to use rewards for ecosystem growth. He sees the current stock drop as a buying opportunity due to this mispricing and the company's long-term potential in the blockchain ecosystem.

“If the market is going to give us a good discount, maybe time to be a buyer of these stocks.” — ▶ 10:00

The analyst believes Coinbase is a long-term leader in blockchain technology, expanding its ecosystem through strategic acquisitions like Derivet, and diversifying its revenue beyond volatile trading. Despite a non-spectacular quarter, the company's strong balance sheet and the vision of its founder, Brian Armstrong, position it well for future growth as blockchain adoption increases, even if it's a 'lumpy' growth path.

“I continue to think Coinbase is the leader in blockchain technology. There's a lot of things that are in the works.” — ▶ 5:00

The YouTuber suggests accumulating Coinbase on pullbacks, noting its current valuation (P/S below 10, P/E of 18) after a 50% drop from highs. He emphasizes the long-term growth driver of stablecoins, particularly USDC, and Coinbase's role in building blockchain infrastructure, envisioning it as a future 'AWS or JP Morgan of the blockchain' with potential for 20x upside.

“I think this is going to be one of those companies you want to accumulate on these pullbacks.” — ▶ Watch clip

Cathie Wood believes Coinbase will benefit significantly from a pro-crypto regulatory environment and increasing institutional adoption of cryptocurrencies. Despite past volatility, the company is diversifying its revenue streams beyond retail trading, making it a key player in the growing crypto ecosystem.

“El fallo de la SEC a favor de Coinbase desatará una gran cantidad de innovación en torno al Bitcoin y en general dentro del ecosistema cripto.” — ▶ 11:50

The YouTuber recommends Coinbase as a 'pickaxe factory' for the crypto gold rush, noting its strong momentum and significant trading volume. He emphasizes that Coinbase profits from market volatility, whether crypto prices rise or fall, by taking a slice of every trade across retail, institutional, DeFi, and NFT services. Growing institutional adoption further supports his bullish stance.

“Volatility equals volume. Volume equals revenue. So, every time the market pumps or dumps, Coinbase makes more money.” — ▶ 10:00