Coinbase(US:COIN) ZACKSยท2025-10-20 14:45Core Insights - Coinbase Global (COIN) has announced a strategic investment of $2.45 billion in CoinDCX, a leading crypto exchange in India and the Middle East, as part of its international expansion strategy [1][2] - The company views India and the Middle East as key regions for crypto growth due to high adoption rates, supportive regulations, and significant economic potential [1][2] - International revenues for COIN have increased to 16.8% of total revenues in 2024, nearly tripling year over year, indicating a successful diversification of revenue streams [3][7] Investment and Market Position - The investment in CoinDCX highlights the potential seen in the Indian and Middle Eastern markets, which have over 1.4 billion people and more than 100 million crypto owners [2] - COIN's international operations span multiple countries, including Australia, Brazil, and Japan, and the company has recently obtained Virtual Asset Service Provider registration in Argentina, allowing legal operations there [2] Competitive Landscape - Circle Internet Group (CRCL) has strengthened its global position through international expansion, enhancing access to regulated digital markets and promoting USDC adoption [4] - Robinhood Markets (HOOD) is also expanding internationally to meet rising global retail investing demand, establishing operations in the U.K. and Asia to diversify revenue streams [5] Financial Performance - COIN shares have gained 57.3% year to date, outperforming the industry [6] - The company's price-to-earnings ratio stands at 53.42, significantly above the industry average of 23.62, indicating a potentially expensive valuation [8] Earnings Estimates - The Zacks Consensus Estimate for COIN's third and fourth-quarter 2025 EPS has seen a slight upward adjustment, while the full-year 2025 estimate remains unchanged [9] - Revenue estimates for 2025 and 2026 indicate year-over-year increases, but EPS estimates for the same years suggest a decline [10]