TLDR
- Coinbase stock gained more than 2% following a strategic upgrade by Rothschild & Co.
- Rothschild set a $417 price target for Coinbase stock, emphasizing its business diversification.
- Coinbase’s reliance on retail transaction fees is expected to drop to nearly 50% next year.
- The partnership with Samsung integrates Coinbase services into 75 million U.S. Galaxy devices.
- Coinbase’s expansion into institutional trading, derivatives, and subscription services supports future growth.
Coinbase stock rose more than 2% on October 3, driven by a key upgrade from Rothschild & Co. and a significant partnership with Samsung. The upgrade, along with the Samsung deal, provided a boost to Coinbase’s market outlook. Investors are now paying attention to Coinbase’s evolving business model and its strategic moves.
Rothschild Upgrade Boosts Coinbase Stock
Rothschild & Co. raised its outlook for Coinbase, setting a $417 price target for the stock. This upgrade highlights the company’s efforts to diversify beyond its core trading operations. According to Rothschild, Coinbase’s business model is shifting, reducing its reliance on retail transaction fees.
Rothschild’s analysis suggests that Coinbase’s revenue sources are becoming more balanced. While retail transaction fees once accounted for 90% of revenue, this figure is expected to decline to nearly 50% by next year. The shift is attributed to the company’s growing presence in institutional trading, derivatives, and subscription services.
The investment bank also highlighted Coinbase’s expanding revenue from USDC and its Layer-2 network, Base. Rothschild argues that these factors will help offset the impact of fee compression. This positive outlook stands in contrast to other cryptocurrency platforms, like Robinhood, which face significant challenges.
Samsung Deal Expands Coinbase’s Reach
In addition to the Rothschild upgrade, Coinbase stock surged after the announcement of a deal with Samsung. Coinbase’s services will be integrated into Samsung’s native wallet on 75 million Galaxy devices in the U.S. This deal represents one of the largest consumer distribution plays in Coinbase’s history.
The integration with Samsung Pay allows users to access crypto trading and payments directly from their devices. By embedding Coinbase’s services into everyday tools like transit passes, the partnership brings crypto to a mainstream audience. Coinbase‘s presence in Samsung’s ecosystem could significantly increase its user base and exposure.
This partnership underscores Coinbase’s strategy of expanding its reach and integrating crypto into everyday life. The move also reflects the growing mainstream adoption of digital assets, especially among new and existing users.
