Investment Rating - The report assigns a "Buy" rating for Coinbase Global Inc with a target price of $270, indicating an expected share price return of 30.8% [6]. Core Insights - The report highlights that Coinbase's 1Q'25 results met expectations, with transaction revenue of $1,262 million, up 16% year-over-year but down 20% quarter-over-quarter. Subscription and services revenue also increased by 15% year-over-year [1][3]. - The acquisition of Deribit for $2.9 billion is noted as the largest M&A deal in the crypto sector, expected to enhance Coinbase's institutional flow and international scaling efforts [2]. - Coinbase's initiatives to drive utility include launching bitcoin-backed loans, expanding USDC use cases, and developing a B2B payment platform [1]. Financial Performance Summary - Transaction revenue was $1,262 million, matching expectations, with total transaction volume reported at $393 billion [3][10]. - Subscription-based revenue reached $698 million, up 86% year-over-year, with staking revenue at $197 million and stablecoin revenue at $298 million [8][10]. - Adjusted EBITDA was $930 million with a margin of 45.7%, exceeding estimates by 4% [8][10]. Strategic Developments - Coinbase's scaling initiatives in derivatives are emphasized, with a global derivatives trading volume of $800 billion in 1Q'25 and the launch of 24/7 BTC and ETH futures [1]. - The report suggests that Coinbase's stock performance will increasingly be linked to competitive M&A and product developments as the crypto landscape evolves [1]. Valuation Framework - The target price of $270 is based on a mid-teens five-year revenue CAGR, with assumptions of market share growth and subscription revenue yield expansion [12][13].