Bitcoin Dependence 'Drops'...Goldman Sachs 'Raises' Coinbase (COIN) Price Target

▲ Coinbase, Goldman Sachs/AI-generated image

Goldman Sachs raised its price target for Coinbase Global (COIN) to $219, focusing on its business expansion.

According to Benzinga on September 10 (local time), global investment bank Goldman Sachs maintained its 'buy' rating for Coinbase. The price target was set at $219. Goldman Sachs analyst James Yaro cited new businesses rapidly expanding beyond existing cryptocurrency spot trading as the key reason.

Goldman Sachs identified six areas as growth drivers: US perpetual futures, prediction markets, tokenized stocks, margin lending, Base, and agentic finance. Coinbase's 'Everything Exchange' aims to provide four axes for individual investor trading: crypto spot, derivatives, traditional stocks, and prediction markets. Market share in the derivatives business reached an all-time high in Q2. The prediction market business reached an annualized revenue of approximately $100 million.

The growth rate of prediction markets was also rapid. Since launching in Q1, revenue and contract numbers have both doubled quarter-over-quarter. Goldman Sachs also evaluated tokenized stocks as an additional growth driver. Coinbase has already launched tokenized stock services in overseas markets in collaboration with Abu Dhabi Global Market.

Coinbase's revenue structure has also changed significantly since its listing. The proportion of Bitcoin (BTC) spot trading, which accounted for over 50% of total revenue at the time of its 2021 IPO, has now fallen to just over 10%. Coinbase COO Emilie Choi stated at a Goldman Sachs conference that the goal is to build "a single platform where any asset can be traded at any time." She estimated the size of the financial market the company could target at $50 trillion.

Coinbase CFO Alesia Haas stated that the company holds approximately 12% of the world's on-chain assets. This provides a foundation for selling other financial products based on large custodial assets. Choi added, "The next area of expansion is tokenization," and "Stablecoins are entering a golden age of providing value to a diverse range of customers, and Coinbase is participating in that market."

[Key Article Summary]

-Goldman Sachs maintained its 'buy' rating for Coinbase and set a price target of $219.

-Six businesses, including US perpetual futures, prediction markets, and tokenized stocks, were identified as new growth drivers.

-Dependence on Bitcoin spot trading revenue has decreased from over 50% at the time of IPO to just over 10% currently.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*