Coinbase's first-quarter revenue fell short of expectations, prompting mixed responses from Wall Street analysts. Analysts noted a 12% revenue drop to $2.03 billion and a nearly 19% decrease in transaction revenue to $1.3 billion, raising concerns about the upcoming quarters. While some analysts like Keefe, Bruyette & Woods and JPMorgan downgraded forecasts due to reduced fee rates and lighter institutional trading, the $2.9 billion acquisition of Deribit, a leading crypto derivatives exchange, was seen as a strategic move. Analysts praised the acquisition, highlighting Deribit's substantial trading volume and open interest, and several projected it would strengthen Coinbase's international presence and enhance its regulatory compliance regarding crypto options. Despite the drop in trading revenue, Coinbase is focusing on growth from subscription and services, which rose by 9% to $698 million, driven by stablecoin adoption. Analysts expressed optimism regarding Coinbase's long-term strategy and resilience against market volatility, particularly through its 'Coinbase as a service' model, which could become a significant revenue driver in the future.

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