Latest news with #GautamChhugani
Yahoo
2 days ago
- Business
- Yahoo
Coinbase Is Becoming a Major Ethereum-Focused Player, Bernstein Says
As Ethereum continues to power an expanding ecosystem, crypto exchange Coinbase (COIN) stands out as one of the leading public companies aligned with the blockchain, Wall Street broker Bernstein said in a research report Monday. The network's native token ether (ETH) has rallied 80% since June 5, the report noted, catalyzed by Circle's (CRCL) listing and the market's realization that most stablecoins are minted on the Ethereum network. Coinbase operates one of the largest Layer 2 chains on Ethereum, Base, which processes more than 9 million transactions daily, encompassing stablecoins, trading, financial applications, and consumer-facing services, analysts led by Gautam Chhugani wrote. While Base has no native token, transaction gas fees are settled in ether, positioning Coinbase to earn sequencer fees in ETH. This contributes to an annualized revenue run rate of $75 million, the analysts wrote. Beyond transaction fees, Base has also emerged as the dominant chain for token deployments, Bernstein said. Coinbase's decision to integrate all Base tokens into its primary exchange platform has significantly increased trading activity, further boosting ETH-denominated brokerage fees. The launch of the Base App, a consumer wallet for buying, selling, holding, and transferring crypto (including stablecoin payments), further strengthens Coinbase's exposure to Ethereum and its ecosystem. In addition to its operational activities, Coinbase holds a sizable ether treasury valued at $590 million (136,782 ETH), making the company a direct beneficiary of the token's price appreciation, the broker said. As Coinbase highlighted in its second quarter earnings report, July trading fees surged approximately 40% compared to the Q2 average, driven by increased ether trading activity. This surge reflects the broader market excitement surrounding ether, and with over 250 tokens listed on Coinbase, the exchange is poised to benefit from the broader Ethereum ecosystem growth, the report added. Bernstein has an outperform rating on Coinbase stock with a $510 price target. The shares were 4% higher, trading around $323 at publication in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Circle Boosts Revenue 53%. How Should You Play CRCL Stock Here?
Circle (CRCL) stock opened some 15% up on Tuesday morning after the stablecoin issuer reported an exciting 53% year-over-year increase in revenue to $658 million in its fiscal Q2. However, the firm swung to $482 million of net loss or $4.48 a share, notably worse than $32.9 million of earnings in the same quarter last year. More News from Barchart This High-Yield (7%) Dividend Stock Is Down Significantly in 2025. Should You Buy the Dip? Dear CoreWeave Stock Fans, Mark Your Calendars for August 14 Tesla Is Axing Its Dojo Supercomputer Plans. What Does That Mean for TSLA Stock Here? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Still, CRCL shares are pushing to the upside as investors continue to focus more on top-line growth. Versus its initial public offering (IPO) price, the crypto stock is currently up some 420%. Is Q2 Loss a Threat for Circle Stock? While nearly $500 million of quarterly loss does look alarming on the surface, much of it was in fact related to IPO-related charges. Simply put, it only reflects accounting adjustments, not operational losses, or structural headwinds facing Circle shares. So, bottom-line weakness will likely prove a one-time event for the Nasdaq-listed firm. CRCL stock may be worth buying on the post-earnings decline also because the fintech firm sees the amount of USDC in circulation growing at a compound annualized rate of 40% going forward. Note that the crypto stock is priced attractively at writing as well after losing more than 45% from its post-IPO highs. How High Could CRCL Shares Fly in 2025? Circle's strong earnings feed right into the bullish view that Gautam Chhugani, a senior Bernstein analyst, shared with clients in his latest research note. Ahead of the company's quarterly release, Chhugani maintained his $230 price target on CRCL stock, saying it's a 'must-hold' for investors seeking exposure to the expected long-term growth in tokenized finance and stablecoin adoption. According to Bernstein, the stablecoin market will grow from roughly $225 billion today to about $4 trillion over the next decade. Its $230 price target on Circle shares indicates potential upside of another 35% from current levels. Wall Street's View on Circle Internet Group Investors could also take heart in the fact that other Wall Street firms also forecast at least a little more upside in Circle stock. While the consensus rating on CRCL shares currently sits at 'Hold' only, the mean target of about $184 suggests potential for a 12% rally from here. 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. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-08-2025
- Business
- Yahoo
Coinbase stock takes a hit as lower crypto volatility slows trading activity
Coinbase (COIN) stock plunged 14%, its biggest intraday drop since April after the crypto platform high flyer's revenue last quarter took a hit from lower trading volume. Revenue for the company's second quarter increased 3.3% year over year to $1.5 billion. Wall Street was expecting a climb to $1.59 billion. Revenue also slowed from $2 billion in the prior quarter. Total trading volume declined 40% in the second quarter as crypto asset volatility declined. "Despite the average crypto price market cap being roughly flat, we saw shifting macro conditions, including trade policy considerations and recession concerns, impact risk assets broadly. And crypto assets were no exception," Alesia Haas, chief financial officer of Coinbase, said on the company's post earnings conference call. "We saw a divergence between bitcoin and everything else as the average bitcoin price in the quarter was up 6%, whereas non-bitcoin asset market cap declined 11%," Haas added. Coinbase shares hit record highs last month as Bitcoin (BTC-USD) reached new all-time highs and Circle (CRCL), a stablecoin issuer, rallied on optimism surrounding new regulations for US dollar backed digital tokens. Bernstein analysts recently dubbed Coinbase a "one-stop Amazon" of crypto services. On Thursday night, Gautam Chhugani reaffirmed an Outperform rating on the stock with a $510 price target and said in a note that the "quarter that doesn't matter." Instead, the analyst said investors should focus on crypto derivatives and the company's "everything exchange" vision for the platform. On Thursday night, CEO Brian Armstrong highlighted on the company earnings call Coinbase's focus on tokenized equities, or digital tokens representing real-world stocks. 'We believe tokenized equities are more efficient with global coverage, 24/7 trading, instant settlement, and the ability to offer perpetual futures," Armstrong told analysts. Year-to-date Coinbase shares are up roughly 24%. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
Coinbase, JPMorgan Deal Signals Shift in Institutional Posture Towards Crypto: Bernstein
Coinbase (COIN) and JPMorgan (JPM) have formed a long-term strategic partnership to expand access to digital assets and enhance customer security. The deal, announced earlier today, underscores Coinbase's role as a core blockchain infrastructure provider, not just a trading venue, for major U.S. banks, according to a note on Wednesday from brokerage firm Bernstein. Rather than competing with crypto platforms, JPMorgan is choosing to integrate with them, signaling a shift in how legacy institutions approach digital assets, analysts led by Gautam Chhugani wrote. The move is especially notable given JPMorgan CEO Jamie Dimon's past criticism of crypto, marking a broader institutional pivot, the report said. The analysts sees the partnership as a major unlock for crypto adoption, removing key banking bottlenecks and enabling Coinbase to tap into existing pools of capital within the traditional financial system. Features like bank-to-Coinbase account transfers and USDC-linked rewards are early steps toward full interoperability between traditional finance and crypto, the broker said, adding that over time, stablecoins like USDC could serve as digital cash for payments and savings, as banks look to bridge the gap between legacy rails and the emerging crypto economy. Bernstein has an outperform rating on Coinbase stock with a $510 price target. The shares were 2.7% higher, trading around $381.50 at publication in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
Trump Media stock tests the limits of bitcoin accumulation: Morning Brief
Strategy (MSTR) makes it look easy. Put larger amounts of bitcoin (BTC-USD) on your balance sheet and watch the numbers get bigger. The corporate finance maneuver has drawn a loyal following. But while executives are imitating the process, not everyone is replicating the results. On Monday, Trump Media (DJT) announced it had purchased $2 billion in bitcoin and related securities as part of its bitcoin treasury strategy. The move is the latest example of public companies purchasing bitcoin and, now, ethereum (ETH-USD) to capitalize on rising token prices. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Counting those purchases, President Trump's namesake media group said bitcoin, the largest cryptocurrency, now comprises two-thirds of its total of $3 billion in liquid assets. But just because companies are trying to emulate Strategy's (né Microstrategy) astronomical success doesn't mean that they will. As my colleagues David Hollerith and Laura Bratton have reported, dozens of companies have increased their exposure to the digital asset since 2023. Eighty firms have adopted the 'bitcoin standard' by adding bitcoin to their treasury reserves, according to Bernstein analyst Gautam Chhugani and data tracked by Coinkite. But it isn't an infallible strategy. While Trump Media shares surged following the purchase announcement, the stock has been struggling. Shares are down more than 40% for the year. GameStop (GME), another imitator of Michael Saylor's bitcoin-holding company, has shed 25% so far this year. The meme stock turned "hodler" is down by roughly the same percentage since disclosing its bitcoin-accumulation program in May. Trump Media said it acquired the cryptocurrencies as part of a previously disclosed plan to become a bitcoin treasury company. And the purchase comes on the heels of a promising week in Washington for the crypto industry, which has lobbied for more favorable oversight. The biggest legislative victory yet arrived on Friday when President Trump signed into law a bill that establishes the first federal framework for dollar-backed stablecoins. (Trump and his family have several crypto ventures, including a startup that has launched its own US-dollar-pegged stablecoin (USD1) in partnership with BitGo.) Read more: How would Trump's strategic bitcoin reserve work? None of the corporate adherents to the Strategy blueprint has managed to generate the same kind of performance, however. Shares of Strategy have more than doubled over the past year and have climbed roughly 50% year to date. After accounting for the company's latest purchases, Strategy now owns more than 3% of all the bitcoin ever minted. Wall Street's most popular bitcoin trade does have its critics. They often point to the dumbfounding arithmetic that Strategy is worth more than the value of the bitcoin it holds. Why not simply buy bitcoin, they implore investors. The answer to the question of why people are willing to pay a premium for Michael Saylor helps explain why Trump Media's stock chart doesn't look like Strategy's. Pivoting to crypto is one way to win. But it may not work for everyone. Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban. Click here for in-depth analysis of the latest stock market news and events moving stock prices
