Coinbase Attracts $40 Million Block Trade as Shares Hit ATH
$Coinbase Global, Inc.(COIN)$
Shares climbed as much as 3% to an all-time record of $398.50 as $Bitcoin (BTC.CC)$ soared past $120,000 Monday, the start of the so-called “Crypto Week” when the House of Representatives is expected to focus on advancing cryptocurrency legislation, providing a regulatory framework for digital assets.
At 11:34:22 a.m. in New York, an active buyer paid a $40.34 million premium for call options that give their holder the right to buy Coinbase shares at $250 in 67 days. That multi-leg transaction was the third biggest block trade involving a stock option, just behind the $53.2 million paid for $NVIDIA (NVDA.US)$ call options expiring in four days and the $54.08 million premium paid for $UnitedHealth (UNH.US)$ $470 put options due in 32 days.
Argus initiated coverage of Coinbase with a “buy” rating and a stock price target of $400, citing the company's “impressive record of growth” and its bright outlook with the passage of the Genius Act, the legislation that provides for a federal framework for regulating stablecoins.
In the first quarter of 2025, Coinbase said its stablecoin revenue climbed 32% to $298 million, from the previous three months. USDC, the world’s largest stablecoin, saw its market cap reach an all-time high of over $60 billion that quarter, driven by institutional demand, on-chain adoption and record trading activity on Coinbase International Exchange, the company said in May.
“We believe that COIN's margins are higher than the peer group and its growth runway is promising, justifying the premium, at least in the near term and during a bull market,” Argus analysts Kevin Heal and Masako Inagaki wrote in a note to clients over the weekend.
“After passing the Senate 68-30, the House of Representatives will likely vote -- and pass -- the GENIUS Act the week of July 14,” Bloomberg Intelligence analyst Elliott Stein wrote in a note Monday. “The bill would bring a regulatory framework for stablecoin issuers, increasing compliance costs and giving issuers a regulated space to thrive,” Stein said.
The average USDC held in Coinbase products increased 49% to $12.3 billion in the first quarter, driven "longstanding efforts to better integrate USDC across our product experience and our rewards program,” the company said in its shareholder letter for the first quarter.
The company also has a long-term partnership with $Circle (CRCL.US)$ aimed at expanding the USDC ecosystem.
"Given our partnership with Circle, which is indefinitely renewable, increased USDC balances on our platform result in durable revenue for Coinbase. Base stablecoin balances reached $4 billion in Q1, up 12% quarter-over-quarter.
For the second quarter, the company forecast subscription and services revenue to reach between $600 million to $680 million, as it sees stablecoin revenue more than offsetting an expected decline in blockchain revenue, the company said in May before cryptocurrencies rallied, with Bitcoin climbing above $120,000. Coinbase is scheduled to release its quarterly financial results on July 24.
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