Goldman Sachs on Wednesday reaffirmed its Buy rating on Coinbase Global Inc.
Why Goldman Raised the Price Target
Goldman Sachs analyst James Yaro pointed to a growing pipeline of products beyond traditional spot crypto trading.
The bank identified six key growth drivers: U.S. perpetual futures, prediction markets, tokenized equities, margin lending, Base and agentic finance.
Goldman highlighted early traction across Coinbase's "Everything Exchange," which now has four major retail trading pillars: spot crypto, derivatives, traditional equities and prediction markets.
The derivatives business reached an all-time high market share in Q2, while its prediction market business has already reached roughly a $100 million annualized revenue run rate.
Since launching in Q1, prediction market revenue and contracts have doubled quarter-over-quarter.
Goldman also pointed to tokenized equities as another potential catalyst. Coinbase has already launched internationally through a partnership with the Abu Dhabi Global Market.
How Coinbase Changed Its Strategy
Coinbase's business has changed significantly since its 2021 public listing, moving away from its heavy dependence on Bitcoin spot-trading fees.
Bitcoin spot trading now accounts for just over 10% of total revenue, compared with more than 50% at the time of Coinbase's IPO.
At Goldman's Communacopia + Technology Conference, Coinbase COO Emilie Choi said the company's goal is to create a single platform where customers can "trade any asset, anytime." She estimated the opportunity to disrupt the broader financial system at a $50 trillion total addressable market.
CFO Alesia Haas said Coinbase currently holds roughly 12% of the worlds on chain assets, giving it a large custody base from which to cross-sell additional financial products.
"The next foray is tokenization, we think stablecoins are entering this golden age of value for different customers, and we play in that space," Choi added.
