Should You Buy Coinbase Global Before Feb. 12?

Core Viewpoint - Coinbase's revenue is anticipated to decline in the upcoming earnings report, reflecting broader challenges in the cryptocurrency market [1][10]. Company Overview - Coinbase Global operates in over 100 countries and reported $516 billion in assets on its platform as of September 30, 2025 [4]. - The company supports 370 tradable assets, facilitating easy buying and selling of various cryptocurrencies [4]. Financial Performance - In Q3 2025, Coinbase reported net revenue of $1.86 billion, a 55% increase year-over-year, with trading volume reaching $295 billion, up 24% from the previous quarter [7]. - Despite a decline in cryptocurrency prices, Coinbase's revenue has remained robust, benefiting from the growing adoption of stablecoins [8]. Revenue Composition - The transaction revenue breakdown for Q3 2025 shows a notable shift away from Bitcoin, which accounted for 24% of total revenue, while Ethereum contributed 17%, and XRP 14% [8]. - Other assets made up 38% of the transaction revenue, indicating a diversification in trading activity [8]. Market Context - The cryptocurrency market has faced significant challenges, with digital assets losing nearly $500 billion in market value since January 29, 2025 [9]. - Bitcoin and Ethereum have both seen declines of over 20% in the past year, impacting investor sentiment [2]. Earnings Expectations - Analysts expect Coinbase to report Q4 earnings of $1.86 billion, with earnings per share estimated at $1.39, reflecting an 18% decrease from the previous year [10]. - A short-term decline in stock price is anticipated following the earnings call on February 12 [10]. Long-term Outlook - Despite current market challenges, Coinbase is viewed as an attractive long-term investment due to expected revenue growth and diversification in its offerings [11].