Can Coinbase (COIN) Leverage Acquisitions Like Vector.fun to Reinvent Its Revenue Model?

• In the past week, Coinbase Global announced the acquisition of Vector.fun, expanding access to Solana and on-chain markets as part of its effort to broaden its trading platform and capabilities.
• This move highlights Coinbase's ongoing focus on diversifying its revenue streams and strengthening its position as a comprehensive exchange for digital assets amid evolving market trends.
• We’ll explore how Coinbase’s acquisition-driven expansion into on-chain markets may influence its investment narrative and future revenue mix.

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Coinbase Global Investment Narrative Recap

For shareholders of Coinbase Global, the core belief centers on the company’s ability to benefit as more assets and payment rails migrate onto blockchain, fueling higher trading and subscription revenue over time. Recent news of its Vector.fun acquisition, which expands direct on-chain market access, does not materially shift the most important short-term catalyst, sustained increases in crypto trading volumes driven by digital asset price movements, nor does it significantly reduce the top risk: ongoing sensitivity to spot trading activity and competitive fee pressure.

Among recent announcements, the termination of Coinbase’s $2 billion negotiation for BVNK, a stablecoin-focused infrastructure firm, stands out. While management continues to highlight momentum in stablecoins and tokenized equities, these developments remain closely tied to the underlying health of digital asset transaction volumes, which still drive much of Coinbase’s business outlook and profitability...

Read the full narrative on Coinbase Global (it's free!)

Coinbase Global's narrative projects $8.5 billion in revenue and $2.1 billion in earnings by 2028. This requires 8.3% yearly revenue growth and a decrease of $0.8 billion in earnings from the current $2.9 billion.

Uncover how Coinbase Global's forecasts yield a $385.27 fair value, a 45% upside to its current price.

Exploring Other Perspectives

You'll find 28 unique fair value estimates from the Simply Wall St Community, from as low as US$136.62 to as high as US$510. When opinions range this widely, it’s essential to consider how much future trading volumes, still the company’s primary earnings driver, could swing the outlook for Coinbase.

Explore 28 other fair value estimates on Coinbase Global - why the stock might be worth as much as 92% more than the current price!

Build Your Own Coinbase Global Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Coinbase Global research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Coinbase Global research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Coinbase Global's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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