Coinbase (COIN) shares rallied as much as 20% in tandem with a sharp recovery in Bitcoin (BTCUSD) on Feb. 13, reversing much of their losses from disappointing earnings earlier in the week.
In its recently reported quarter, the blockchain infrastructure company lost $667 million and came in significantly below revenue estimates.
Still, there’s ample reason for investors to load up on Coinbase stock, which is currently down about 60% versus its October high.
Agentic Wallets Warrant Buying Coinbase Stock
COIN stock is attractive as a long-term holding largely due to the company’s latest rollout of Agentic Wallets, a new infrastructure that lets artificial intelligence (AI) bots hold funds and trade autonomously on the Base network.
CEO Brian Armstrong’s focus on machine-to-machine commerce — in which AI agents pay each other for API access or compute power — convinced many institutional investors that Coinbase is evolving from an exchange to a critical layer of the AI economy.
Among them was Ark Invest founder and chief executive Cathie Woods, who loaded up on $13.1 million worth of Coinbase shares last week, indicating long-term conviction despite near-term volatility.
BTC Price Recovery To Supercharge COIN Shares
Coinbase shares are also worth buying because the company remains committed to diversifying its revenue beyond trading volumes.
Moreover, if BTC continues to recover over the next few weeks and months, this crypto stock will see a three-pronged financial boost:
- The on-paper Q4 loss (because Coinbase holds a significant amount of crypto on balance sheet) may turn into notable unrealized gains.
- A healthy crypto market usually leads to more USDC in circulation. Since Coinbase shares interest income from USDC, a market rebound will boost this high-margin recurring revenue.
- Historically, rising Bitcoin prices act as the best marketing for Coinbase. Higher prices bring back retail traders, who pay significantly higher fees than institutional players.
What’s the Consensus Rating on Coinbase?
Wall Street remains bullish on Coinbase as well, especially now that it’s trading at a more digestible valuation of about 26x forward earnings.
The consensus rating on COIN shares sits at “Moderate Buy” currently, with the mean target of about $294 indicating potential upside of more than 65% from here.
This article was created with the support of automated content tools from our partners at Sigma.AI. Together, our financial data and AI solutions help us to deliver more informed market headline analysis to readers faster than ever.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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