3. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders as of Q4: 69
Ark Invest’s Equity Stake: $753.5 Million
Coinbase Global, Inc. (NASDAQ:COIN) operates a cryptocurrency exchange platform, enabling users to buy, sell, transfer, and store digital assets in the US and internationally. The company delivered a strong financial performance in Q4 2024, reporting an adjusted EBITDA of $3.3 billion, marking its second consecutive year of positive adjusted EBITDA. Trading volume surged to $439 billion, reflecting heightened customer engagement and increased market activity. Revenue reached $2.27 billion, far surpassing the expected $1.59 billion, and demonstrating a year-over-year growth of almost 143%. The reported Q4 earnings per share of $4.68 significantly exceeded the forecasted $1.36. Net income stood at $1.3 billion, bolstered by $476 million in pretax gains from crypto asset investments. Subscription and services revenue also showed strong growth, rising 15% quarter-over-quarter to $641 million.
Despite the outstanding financial results, Coinbase Global, Inc. (NASDAQ:COIN)’s stock declined by 1.47% in after-hours trading, closing at $293.72. This downturn followed an earlier 8.44% rally during regular trading hours. The stock movement suggests that while investors recognized Coinbase’s strong earnings, they may have been influenced by broader market trends or concerns about sustainability amid crypto market volatility.
Coinbase Global, Inc. (NASDAQ:COIN) has faced a challenging few weeks, with its stock declining about 30% since mid-February and 40% since its 52-week high in December. However, analysts see this as a buying opportunity, citing the exchange’s strong positioning amid the Trump administration’s pro-crypto policies. Rosenblatt Analyst Chris Brendler initiated coverage with a Buy rating and a $305 price target, highlighting Coinbase as the sector’s “clear blue chip” with resilience in both bull and bear markets. He noted that the company’s growing non-trading revenue will help it weather future downturns, though recent declines stem from political uncertainty and fluctuating tariffs. Brendler remains optimistic, describing the current environment as a “Crypto Spring” and emphasizing Coinbase’s market dominance due to its brand strength, liquidity, and user experience. He also believes regulatory clarity will drive more institutional adoption, reinforcing Coinbase’s leadership.
Patient Capital Management stated the following regarding Coinbase Global, Inc. (NASDAQ:COIN) in its Q4 2024 investor letter:
“The top performers in the fourth quarter were once again Financials and Travel names. We’ve been over-indexed to them since the pandemic, which has served us well. We strategically added to certain financial names like Sofi Technologies (SOFI) and Coinbase Global, Inc. (NASDAQ:COIN) during the year. Both companies rebounded strongly in the fourth quarter. We believe Coinbase is building the platform for the crypto ecosystem. Certain recent advances (wallet, base improvements, USD Coin) could cause an adoption tipping point. We like that Coinbase continues to widen its moat by persistently investing in innovation.”
