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BullDigest's May 9 Pre-Market Summary of Coinbase Global, Inc.

  • 09.05.2025 15:08
  • bulldigest.com
  • Keywords: Pre-Market, Summary, Coinbase Global, Inc.

Check out BullDigest's May 9 Pre-Market Summary of Coinbase Global, Inc.. We provide a summary of the key news before the market opens.

Pre-Market SummaryCOINCGEMY

Estimated market influence

Piper Sandler

Positivesentiment_satisfied
Analyst rating: N/A

Raised Coinbase's price target and maintained a neutral rating based on in-line revenues and adjusted EPS exceeding estimates.

Coinbase

Coinbase

Neutralsentiment_neutral
Analyst rating: Buy

Received a raised price target from Piper Sandler, acquired Deribit for $2.9 billion to expand derivatives business, reported mixed Q1 2025 results with revenue up YoY but short of estimates, and expects lower subscription and services revenue in Q2.

Deribit

Positivesentiment_satisfied
Analyst rating: N/A

Acquired by Coinbase for $2.9 billion; controls 85% of global crypto options market, reported $1.03B revenue in 2024 with 95% YoY growth, handles $30B open interest, and sees $1T transaction volume outside the US.

Gemini

Gemini

Neutralsentiment_neutral
Analyst rating: Buy

Announced expansion in Europe under MiFIDII license to offer crypto derivatives products across the EU.

Kraken

Neutralsentiment_neutral
Analyst rating: N/A

Pursuing derivatives licenses and expanding in CFD markets.

Crypto.com

Neutralsentiment_neutral
Analyst rating: N/A

Expanding in derivatives markets alongside Kraken.

Context

Business Insights and Market Implications Summary

  • Piper Sandler Price Target Update

    • Piper Sandler raised Coinbase's (COIN) price target to $190 from $180, maintaining a Neutral rating.
    • The upgrade was based on in-line revenues and adjusted EPS exceeding estimates.

  • Coinbase Acquisition of Deribit

    • Coinbase is acquiring crypto options exchange Deribit for $2.9 billion (700M cash + 11M COIN shares).
    • Deal expected to close by end of 2025, pending regulatory approvals.
    • Deribit controls 85% of the global crypto options market, reported $1.03B in revenue in 2024 (95% YoY growth), and handles ~$30B in open interest.
    • Deribit operates in Dubai, offering futures, perpetual futures, and options, with a transaction volume of $1T across non-US markets.

  • Coinbase Strategic Expansion

    • The acquisition aims to create a comprehensive trading platform (spot, futures, options).
    • Positions Coinbase for growth in the crypto derivatives market.

  • Gemini's European Expansion

    • Gemini, led by the Winklevoss Bros., announced expansion into Europe with a MiFIDII license, offering crypto derivatives products across the EU.

  • Competitive Landscape in Crypto Derivatives

    • Other exchanges like Kraken and Crypto.com are pursuing derivatives licenses and expanding in CFD markets.
    • Crypto derivatives trading volumes reached $240.2B in the past 24 hours, up +4.16% from the previous day.

  • Coinbase Q1 2025 Results

    • Revenues: $2 billion (up 24% YoY, short of $2.1B estimates).
    • Transaction revenue: Down 19% QoQ to $1.3B.
    • Adjusted earnings: $1.94 per share, beating Wall Street expectations.
    • Net income: Plunged 94% YoY to $66 million (24 cents per share).
    • Adjusted net income: $526.6M ($1.94 per share).

  • Q2 Revenue Outlook

    • Coinbase expects subscription and services revenue in Q2 to range between $600M-$680M, anticipating a decline.

  • Market Factors Impacting Coinbase

    • Declines in crypto prices were attributed to tariff policy and macroeconomic uncertainty.

  • Regulatory and Strategic Initiatives

    • Coinbase executives highlighted Bermuda's role in the digital asset economy, emphasizing regulatory clarity.

  • Bill Gates' Donation

    • Bill Gates pledged to donate nearly all of his remaining wealth, estimated at $107 billion, to the Gates Foundation.