We came across a bullish thesis on Coinbase Global, Inc. on The Reservist’s Substack by Yehoshua Zlotogorski. In this article, we will summarize the bulls’ thesis on COIN. Coinbase Global, Inc.’s share was trading at $164.32 as of February 13th. COIN’s trailing and forward P/E were 36.93 and 26.60 respectively according to Yahoo Finance.
Coinbase Global, Inc. operates a platform for crypto assets in the United States and internationally. COIN has experienced a sharp sell-off during 2025, declining roughly 43% from its highs, largely mirroring the weakness in Bitcoin, given the company’s strong correlation with crypto prices. While an investment in Coinbase is effectively a directional bet on Bitcoin, the company possesses several structural advantages that differentiate it from a pure asset proxy. Most notably, it serves as the primary custodian for more than 80% of U.S. spot Bitcoin and Ethereum ETFs, creating significant institutional lock-in and strengthening its competitive moat.
In addition, Coinbase continues to expand higher-margin recurring revenue streams through staking, subscription services, and its Layer-2 ecosystem initiatives, which collectively enhance earnings durability even though they have not yet fully decouple the stock from crypto price movements. The investment thesis is therefore driven by a forward view on macro liquidity conditions, with expectations that anticipated interest rate cuts from the Federal Reserve and potential fiscal stimulus in the second half of 2026 could increase market liquidity, historically a strong tailwind for crypto assets and trading activity.
Within this context, Coinbase represents a sold-off high-quality growth company offering asymmetric risk-reward, with an upside target near $350 supported by analyst estimates from firms such as Goldman Sachs and Rosenblatt Securities, as well as operating leverage to a potential Bitcoin recovery. Downside risk appears limited based on technical support, creating a favorable payoff profile. Given the inherent volatility and macro dependency, the position is sized conservatively, but the combination of institutional positioning, improving liquidity expectations, and depressed valuation creates an attractive tactical entry point.
Previously, we covered a bullish thesis on Robinhood Markets, Inc. (HOOD) by kumaramit0703 in March 2025, which highlighted its evolution into a diversified fintech platform with multiple revenue streams and user growth. HOOD’s stock price has appreciated by 77.5% since our coverage. Yehoshua Zlotogorski shares a similar view but emphasizes the institutional moat and liquidity upside for Coinbase Global, Inc.
Coinbase Global, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held COIN at the end of the third quarter which was 87 in the previous quarter. While we acknowledge the risk and potential of COIN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COIN and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
