Coinbase Just Gained More Than 25% in a Month. Here's Why It's Still a Buy

Core Viewpoint - Coinbase Global is adapting its business model to establish diverse revenue streams beyond cryptocurrency trading, positioning itself as a comprehensive investment platform [3][10]. Group 1: Company Performance - Coinbase's stock price has experienced significant volatility, declining approximately 40% over the past six months due to cryptocurrency price slumps [1]. - Recent recovery signs in digital assets have led to a price increase of over 25% in the past month, with Coinbase trading around $196 as of March 12 [2]. Group 2: New Revenue Streams - Coinbase launched 24/5 stock trading in the U.S., offering around 6,000 U.S. stocks and ETFs for commission-free trading, which enhances its competitive position between crypto exchanges and traditional brokerages [5]. - The company introduced futures contracts in 26 European countries, allowing customers to leverage up to 10 times on certain products, further diversifying its offerings [6]. Group 3: Stablecoin Revenue - Stablecoins, particularly USD Coin (USDC), are projected to be a significant revenue source for Coinbase, with yields from USDC deposits contributing nearly 20% of the company's revenue last year [7][9]. - Coinbase generated $1.35 billion from stablecoins in 2025, an increase from $911 million in 2024, indicating strong growth potential as financial institutions adopt stablecoins [9]. Group 4: Strategic Positioning - Coinbase holds a significant stake in USDC, the second-largest stablecoin by market cap, and earns revenue from both on-platform and off-platform USDC holdings [8]. - The company is involved in various blockchain initiatives, including custody services for Bitcoin ETFs and developing crypto wallets for AI agents, reinforcing its central role in the blockchain ecosystem [10].