Latest news with #USDC-related
Yahoo
30-07-2025
- Business
- Yahoo
Coinbase Reaps Growing Rewards from Circle Ties and USDC Economics: JPMorgan
Coinbase's (COIN) partnership with Circle (CRCL) and exposure to Circle's USDC stablecoin is generating significant financial upside, both through equity appreciation and high-margin revenue streams, according to a new report from Wall Street bank JPMorgan. The total value of Circle-related economics to Coinbase shareholders is estimated at $55 to $60 billion, the bank said, suggesting the market may be underestimating the strategic importance of the USDC ecosystem. The crypto exchange holds 8.5 million shares in Circle, valued at $1.6 billion as of July 25. The larger story, however, lies in USDC-related income, according to the report. In the first quarter of this year alone, Coinbase earned roughly $300 million in distribution payments from Circle, more than Circle's total net revenue of $230 million. The bank estimated that Coinbase had $13 billion in USDC balances on-platform at the end of the first quarter, generating $125 million in revenue at 20–25% margins. Off-platform, Coinbase splits Circle Reserve Fund income 50/50, pulling in $170 million last quarter at nearly 100% margin, the report added. The bank has a neutral rating on Coinbase stock with a $404 price target. The shares were around $381 in early trading Tuesday.
Yahoo
11-06-2025
- Business
- Yahoo
Will Coinbase's Subscription & Services Revenues Fuel its Top Line?
Coinbase Global Inc. COIN is steadily expanding its subscriptions and services revenues to diversify income and enhance business resilience. Transaction revenues continue to be the biggest revenue stream for this crypto leader. As trading revenues remain sensitive to crypto market volatility, subscription and services provide a more stable foundation, underpinned by predictable, fee-based, non-transactional and services revenues have shown consistent growth, with USDC-related stablecoin income becoming an increasingly important driver. Rising average USDC balances across both customer and corporate accounts are expected to enhance stablecoin revenues, while higher prices for Solana and Ethereum are likely to boost earnings from blockchain fluctuations in USDC demand, the amount of USDC held on the platform, prevailing interest rates and key partnerships — especially with organizations like Circle — can significantly influence subscription and services revenues, which contributed about 36% to the company's net revenues in the first quarter of 2025, up from 32% in the first quarter of recently agreed to acquire Derbit, which, upon materialization, will lead to a more diverse and robust source of revenues. Management estimates subscription and services revenues in the range of $600-$680 million in the second quarter of 2025. It also expects growth in Stablecoin revenues to be offset by a decline in blockchain rewards revenues due to lower asset subscription and services business by pushing stablecoin income, staking services, and growing uptake of Coinbase One and custody solutions to drive higher revenues from this source will thus play a crucial part in Coinbase's long-term growth. COIN competes with Robinhood Markets HOOD and Interactive Brokers Group, Inc. IBKR, two crypto-oriented subscription and services revenues, led by its Robinhood Gold program and other ancillary offerings, continue to grow at a steady pace. This recurring revenue stream complements the company's robust transaction and interest income, contributing to sustained top-line Brokers Group's non-commission revenue streams—comprising market data fees, IBKR Pro subscriptions, clearing and routing services, and interest earned from margin lending—complement its commission-based brokerage model and serve as important contributors to overall revenue growth. Shares of COIN have gained 3.7% year to date, outperforming the industry. Image Source: Zacks Investment Research COIN trades at a price-to-earnings value ratio of 46.1, above the industry average of 18.7. However, it carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for COIN's second-quarter and third-quarter 2025 EPS has moved down 50% and 39.6%, respectively, over the past 60 days. The same for full-year 2025 and 2026 EPS has increased 62.2% and 21.1%, respectively. While the consensus mark for COIN's 2025 EPS indicates a year-over-year decline, the same for 2026 EPS suggests an increase. Image Source: Zacks Investment Research The consensus estimates for COIN's 2025 and 2026 revenues indicate year-over-year increases. COIN stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
