Core Viewpoint - The SEC has agreed to drop its lawsuit against Coinbase with prejudice, indicating a shift in regulatory stance towards cryptocurrency under the Trump administration compared to the previous leadership of Gary Gensler [1]. Group 1: Lawsuit Details - The SEC's lawsuit, initiated in 2023, claimed that crypto assets were securities and accused Coinbase of operating as an unregistered national securities exchange, broker, and clearing agency [2]. - Coinbase contended that the SEC had not established clear rules regarding cryptocurrency, which undermined the basis for the lawsuit [2]. Group 2: Financial Implications - Coinbase CEO Brian Armstrong noted that defending against the SEC lawsuit cost the company $50 million, which included only external legal fees and not employee time [4]. - Armstrong's comments reflect the financial burden of litigation, confirming earlier warnings about the high costs associated with engaging in legal battles with the SEC [3][4]. Group 3: Future Outlook - Despite the legal victory, Armstrong emphasized the necessity for the US to pass legislation for cryptocurrency to ensure favorable regulations and maintain competitiveness with other nations [5].

Core Viewpoint - The SEC's dismissal of the lawsuit against Coinbase marks a significant positive shift for the company and the broader crypto industry, contrasting the regulatory environment under the previous administration [2][3]. Legal Developments - The SEC had previously sued Coinbase, alleging it operated an unregulated securities exchange, which created uncertainty for investors [1]. - The dismissal of the lawsuit is seen as a validation of Coinbase's stance that the case should not have been filed [2]. Financial Performance - Coinbase reported adjusted Q4 earnings of $3.39 per share, exceeding the Zacks Consensus Estimate of $1.94 per share by 74.7% [7]. - The company achieved revenues of $2.27 billion in Q4, surpassing estimates by 23.7% [7]. - This latest earnings report marks the eighth consecutive time Coinbase has exceeded earnings expectations, with a trailing four-quarter average earnings surprise of 46.15% [8]. Future Outlook - Analysts have raised EPS estimates for the current quarter by 258.33% over the past 60 days, with the Q1 Zacks Consensus Estimate now at $2.15 per share, indicating a potential growth of 30.3% year-over-year [9]. - Revenues for the upcoming quarter are anticipated to increase by 34.3% to $2.2 billion [9]. Market Sentiment - Coinbase stock is currently rated as a Zacks Rank 1 (Strong Buy), reflecting strong price and earnings momentum [10]. - Despite the positive outlook, Coinbase stock is expected to remain volatile, influenced by movements in Bitcoin and other cryptocurrencies [10].

Coinbase said Friday (Feb. 21) that Securities and Exchange Commission (SEC) staff have agreed in principle to dismiss the agency’s enforcement case against the cryptocurrency company, subject to commissioner approval.“We’ve always maintained that we were right on the facts and the law, and today’s announcement confirms that this case should never have been filed in the first place,” Coinbase Chief Legal Officer Paul Grewal wrote in a Friday blog post. “This is a victory not just for Coinbase, but for our c ...

Brian Armstrong, CEO of Coinbase, speaking on CNBC's Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 21st, 2025.Coinbase announced Friday that the Securities and Exchange Commission has agreed to drop its enforcement case against the company, pending the approval of the regulator's commissioners.Shares of Coinbase rose 4% in premarket trading. In 2023, the SEC charged Coinbase with operating an unregistered securities exchange and for failing to properly register its crypto staking ...

Since the release of its earnings for Fiscal Year (FY) 2024 on the 13th of February through the 19th, the stock price of global cryptocurrency exchange Coinbase Inc (NASDAQ: COIN ) has dropped by more than 13%. Going by line item trends, thisCurrently leading research at Leverage Shares, I have longstanding professional experience with financial markets. All views are my own and I can assure you that I smile sometimes. M.S.F, M.B.A., IIT Chicago. My investment style is purely agnostic, informed by facts and ...

Core Viewpoint - The article discusses why certain well-known stocks, specifically Taiwan Semiconductor, Spotify, Shopify, and Coinbase, are not included in the S&P 500 index and suggests alternative ETFs for investors to gain exposure to these companies [1][3]. Group 1: Stocks Not in S&P 500 - Taiwan Semiconductor Manufacturing (TSM) is excluded from the S&P 500 due to its headquarters being in Taiwan, despite having a trillion-dollar market cap [4][5]. - Spotify (SPOT) is a foreign company based in Sweden and Luxembourg, which prevents its inclusion in the S&P 500, but it is included in over 120 ETFs [7][8]. - Shopify (SHOP) is based in Canada and thus not eligible for the S&P 500, yet it is held by approximately 75 ETFs, including ARK Fintech Innovation ETF [9]. - Coinbase International (COIN) is a U.S.-based company with a market cap of $66 billion, but it has been skipped for S&P 500 inclusion multiple times, although it is included in over 160 other ETFs [11][12][14]. Group 2: Alternative ETFs - Taiwan Semiconductor is a major holding in the S&P World Ex-US ETF and the VanEck Semiconductor ETF, providing alternative investment options [6]. - Spotify is the top holding in the First Trust International Equity Opportunities ETF and is included in various Vanguard ETFs [8]. - Shopify is a flagship holding in ARK Fintech Innovation ETF, representing 10% of the fund's total value [9]. - Coinbase is a significant holding in multiple ARK funds and is also included in various SPDR and Vanguard ETFs, indicating strong investor interest [14].

Core Insights - The episode evaluates Coinbase's stock potential, focusing on business strength, management, and financials to determine if it is a strong investment or a risky bet in the crypto landscape [1] Group 1: Business Strength - The analysis includes ratings on Coinbase's business strength, indicating the company's position in the evolving cryptocurrency market [1] Group 2: Management Evaluation - The discussion also covers the management aspect of Coinbase, assessing how leadership decisions impact the company's performance and investor confidence [1] Group 3: Financial Analysis - Financial metrics are examined to provide insights into Coinbase's profitability and growth potential, which are critical for investment decisions [1]

Core Viewpoint - Coinbase Global, Inc. has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system focuses on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for Coinbase Global indicate an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10]. Earnings Estimate Revisions for Coinbase Global - Analysts have increased their earnings estimates for Coinbase Global, with the Zacks Consensus Estimate rising by 67.7% over the past three months [8]. - The expected earnings per share for the fiscal year ending December 2025 is $4.56, reflecting a year-over-year change of -40% [8].

Core Insights - The article highlights the release of the latest CryptoNewsAudio Production by IBN, aimed at connecting public companies to the investment community through specialized content distribution [1][5] - John D'Agostino, Head of Strategy at Coinbase Institutional, discusses his background and the challenges faced by crypto companies in accessing traditional banking services [2][4] Group 1: Company Insights - IBN is a multifaceted communications organization that has been operational for over 19 years, providing distribution and corporate messaging solutions to more than 500 public and private companies [5][8] - CryptoCurrencyWire, a division of IBN, focuses on financial news and content distribution, offering services such as article syndication to over 5,000 news outlets and social media distribution to nearly 2 million followers [6][9] Group 2: Industry Insights - John D'Agostino emphasizes the similarities between crypto trading and commodity derivatives, noting that both have periods of opacity followed by rapid price discovery [3] - A study conducted by D'Agostino revealed that approximately 62% of crypto firms face significant challenges in accessing basic banking services, in stark contrast to less than 1% of traditional funds [4]

Investment Rating - The report maintains a "BUY" rating for Coinbase, indicating a potential return of over 15% over the next 12 months [19]. Core Insights - Coinbase reported strong 4Q24 results with total revenue growing by 138% YoY and 88% QoQ to US$2.27 billion, exceeding Bloomberg consensus estimates by 21% [1]. - The favorable regulatory environment is expected to support long-term growth for Coinbase, leading to a revision of FY25-26 total revenue forecasts upward by 24-27% [1][7]. - The target price for Coinbase has been raised to US$352.00 from a previous US$250.00, reflecting a 28.3% upside from the current price of US$274.31 [3][9]. Financial Performance Summary - For FY24, Coinbase's revenue is projected at US$6.564 billion, with net profit expected to reach US$2.579 billion, resulting in an EPS of US$10.43 [2]. - The adjusted EBITDA for 4Q24 was reported at US$1.29 billion, a 298% increase YoY, driven by strong operating leverage [1]. - The transaction revenue in 4Q24 grew by 194% YoY to US$1.56 billion, while subscription and services revenue increased by 64% YoY to US$641 million [6]. Revenue and Profitability Forecast - Revenue forecasts for FY25E and FY26E have been revised to US$7.204 billion and US$7.602 billion, respectively, reflecting increases of 23.7% and 26.8% compared to previous estimates [7]. - The net profit for FY25E is estimated at US$1.529 billion, with an EPS of US$6.18, which is above the consensus estimate of US$5.96 [2][8]. - The adjusted EBITDA margin improved to 58.7% in 4Q24, up by 23 percentage points YoY, indicating strong operating leverage [6]. Strategic Initiatives - Coinbase plans to focus on three key initiatives in FY25E: driving core business revenue growth, enhancing utility for crypto payments, and engaging with regulators to shape crypto regulation in the US [6]. - The company aims to expand its asset offerings and improve user experience to capture more market share [6]. Valuation - The valuation of Coinbase is based on a sum-of-the-parts (SOTP) approach, with the transaction business valued at US$286.0 per share, accounting for 81% of the total valuation [9]. - The custodial and asset management business is valued at US$19.7 per share, while the interest and stablecoin business is valued at US$22.7 per share [9].