Coinbase's Institutional Growth Soars, But Risks Persist

Summary

• Coinbase's institutional transaction revenue surged 272.5% YoY in Q2 2024, reaching $63.6 million, reflecting rising institutional demand.
• Subscription and services revenue increased 78% YoY, hitting $599 million in Q2 2024, supporting diversification beyond trading fees.
• Total trading volume grew 145.7% YoY, reaching $226 billion, with institutional investors accounting for over 83% of the volume.
• Revenue for Q3 2024 is projected at $1.26 billion, up 86.9% year over year, but slightly below Q2’s $1.4 billion.
• Wall Street's consensus price target for Coinbase is $243.87, offering a potential 38% upside from current levels.