Coinbase is rising again. The stock rose 7% after Goldman Sachs upgraded the stock to buy and raised its 12-month target to $303 from $294. That means Goldman expects the stock to rise 28% going forward. Over the past year, Coinbase is down 13%, while the S&P 500 is up 15%, leaving Coinbase far behind the market.
Goldman’s upgrade didn’t come out of nowhere. Analyst James Yaro said the weak stock price gave investors a cheap entry point. “As Coinbase moves from cyclical to structural growth, we should see a higher valuation over time,” he wrote.
Yaro also said that because of its size and name recognition, Coinbase is still raising more capital than its peers and gaining market share.
“COIN’s scale and brand recognition continue to drive best-in-class (customer acquisition costs), above-average revenue growth and market share expansion,” he added.
Goldman expects growth in Coinbase’s crypto infrastructure business
Yaro believes that Coinbase is no longer just a trading platform. He pointed to the company’s subscription and services business, which includes custody, stablecoins, staking, and prime brokerage.
These businesses accounted for less than 5% of revenue in 2020, but now account for about 40%. He expects this to grow a further 13% annually from 2025 to 2027. These services are not tied to trading volumes, which could help reduce volatility in profits, he said.
Yaro said Coinbase products have become more competitive recently, especially in long-term growth areas. He said he expects the new services to be added to Coinbase’s core offering and continue to grow.
“We are positive that COIN will expand its exposure to crypto infrastructure businesses through its subscription and service offerings, which should dampen revenue volatility over time,” he wrote.
Goldman’s message was clear. Coinbase is building a more stable and scalable business, even if the market doesn’t realize it yet.
At the same time as the stock price rose, Coinbase also began withdrawing from Argentina. The company told users via email that it will stop supporting USDC and Argentine Peso starting January 31st.
After that date, users will no longer be able to use pesos to buy or sell USDC or transfer pesos to bank accounts. Coinbase calls this an “intentional pause” rather than a complete withdrawal. They said that crypto-to-cryptocurrency trading will continue to work and will resume later with a better product.
Coinbase only entered Argentina in 2025, shortly after receiving approval from the country’s National Securities Commission (CNV).
At the time, Coinbase said that 5 million people in Argentina use cryptocurrencies every day. The country has become a crypto hot zone thanks to high inflation and strict capital controls. Coinbase saw this as a huge opportunity. But for now, they’re dialing it back.
However, they have not given up on the area. Forbes Argentina said Coinbase remains in contact with local partners. One of them is Lipio, an Argentine exchange that introduced the Peso Stablecoin (wARS) last year. Coinbase also relies on the Base ecosystem to maintain its presence in the country.
