Wall Street analysts sent mixed rating of Coinbase (MOIN) after its first quarter earnings and a $ 2.9 billion acquisition, with some downgrade in the short term forecasts and others pointing to long-term strategic gains.

“Q1 results came a little under expectations and forward-looking guidance to [subscription and service] Revenue and April [transaction] Quantities were affected by softer crypto markets and mixing/discounts, “wrote Barclays Benjamin Buddish, who maintained a” straight weight “rating, in a report.” Otherwise, Coin Lovely trade gains in both space and futures in the 1st quarter and remain quite optimistic. “

The US-based Crypto Exchange issued a decrease of greater than of 12% decrease in revenue from the previous quarter to $ 2.03 billion. Transaction revenue dropped almost 19% to $ 1.3 billion and raised red flags in the current period. Several analysts, including Keefe, Bruyette & Woods and JPMorgan, lowered their second quarter and full -year income, citing falling fee prices and easier institutional activity.

Retail kept stable, but institutional revenue got a hit. JPMorgan marked the decrease in revenue from institutional volume of 30% quarter over the quarter and a decrease in institutional fees from 4.1 to 3.1 base points, driven by incentives, discounts and a heavier presence of high -frequency dealers.

Still, $ 2.9 billion acquisition of deribit, the leading global crypto derivative exchange, stood out as a bold effort in the future of the derivatives.

The deal, which is expected to close at the end of the year, withdrew praise from Bernstein (with a better than rating), which called the valuation fair given Deribit’s annual volume of $ 1.2 trillion and $ 30 billion in open interest rates. Canaccord Genuality (Purchase Rating) said the acquisition provides Coinbase Strength internationally and is primed to any US regulatory clearance of crypto settings.

While trade revenue is falling, the exchange leans on other growth handles. Subscription and Services Revenue rose 9% to $ 698 million, increased by stableecoin -admission. The USDC balance on Coinbase rose almost 50% to $ 12.3 billion, and Saldi held off-platform jumped 39% to $ 42 billion. Average balance per User has tripled since June 2023, noticed Canaccord.

The company’s strategy also includes expanding its “Coinbase as a Service” model-white-label infrastructure for institutions who want to enter the crypto market. Analysts in Canaccord say this could become an important turnover player who offers a hedge against volatile commercial cycles.

“We’ve heard lots of anecdotal data points at this time from Tradfi and Crypto-native Infrastructure players, like a purchase [versus] Build Strategy is the most likely scenario if this industry develops rapidly, ”said Canaccord analysts.” Revenue from such types of infrastructure as a service would help smooth out trading variability in quarterly numbers, while further cementing the company’s cornerstone positioning on the market. “

Oppenheimer (better than) and Barclays emphasized macroeconomic risks, including customs -related uncertainty and weak mood that dragged quantities down in April and so far in May. The hopes of legislative clarity suffered a setback as the genius-action — a stablecoin-focused Senates Bill-Blev blocked earlier this week. Despite this, JPMorgan said the management remained optimistic that progress with legislation could be resumed before the exit in August.

Coinbase still considers itself central to the developing crypto ecosystem. While the immediate views are flooded with low quantities and pressed fees, many analysts say the exchange’s expansion of the product package, dominant American market position and early mover benefits in derivatives and infrastructure set it up well in the long term.

As Canaccord expressed it, the coin base “The Gold Standard” remains for both institutional and retail performance in digital assets – even if it has to navigate more chopped waters in the short term.

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