COIN Soared 115% — Too Late to Buy, or Just Getting Started?

Stablecoins? Most think of $Circle Internet Corp.(CRCL)$ — but did you know half its revenue goes to $Coinbase Global, Inc.(COIN)$? It surged 115% since its April lows!

Some savvy traders in our community have already capitalized on the momentum:

🎉 Huge congrats to @Atwosome for locking in $7,200 in profits on $Coinbase Global, Inc.(COIN)$.

🎉 Huge congrats to @Tiger1503 for securing $7,141 in profits on $Coinbase Global, Inc.(COIN)$.

🎉 Huge congrats to @pinksocks for earning 41% returns by selling $Coinbase Global, Inc.(COIN)$ puts.

Why Is Coinbase’s Relationship with Circle So Valuable?

Coinbase has two major touchpoints with Circle Internet Group — and both are revenue drivers:

1. Equity Stake: Coinbase owns a 3.7% stake in Circle. As Circle’s valuation climbs, so does the value of Coinbase’s holdings.

2. USDC Revenue Sharing: Coinbase earns 100% of the reserve yield when USDC is held on its platform, and 50% when held elsewhere. Remember: every USDC is backed 1:1 by USD or short-term U.S. Treasuries, which generate interest income — a key revenue stream that’s growing fast.

Unlike Bitcoin, stablecoins are designed for payments, not speculation — making Coinbase’s ecosystem more embedded in real-world transactions.

With the recent rally in Circle’s valuation, we’ve even seen legacy players like $Visa(V)$ and $MasterCard(MA)$ drop 5–7%, reflecting a shift in the payments landscape.

Is COIN’s Current Valuation Reasonable?

Coinbase currently trades at a forward P/E of 64x — a hefty 109% premium over peers in crypto, brokerage, and payments. That might sound steep, but it aligns closely with its historical median (53x), reflecting:

• Its unique, scalable business model

• Increasing exposure to the stablecoin narrative

• Operating leverage in future crypto bull cycles

New ventures like Base chain, institutional services, and stablecoin infrastructure continue to diversify its revenue mix, offering both earnings growth potential and multiple expansion.

GENIUS Act: The Next Catalyst?

With the GENIUS Act now passed in the Senate and awaiting final approval, all it takes is a presidential signature to transform it into a framework for modern crypto payments. If enacted, it could:

• Allow businesses to bypass costly credit card fees

• Open the door for giants like $Wal-Mart(WMT)$ and $Amazon.com(AMZN)$ to adopt stablecoin rails

• Position Coinbase as a frontrunner in a regulated crypto payments ecosystem

While the GENIUS Act would be a major tailwind, clear regulation could also invite stronger competition. Tech titans like Amazon — with deep pockets, brand trust, and massive scale — could enter the market quickly once guardrails are in place. The era of crypto as the “Wild West” is ending, and Coinbase may soon find itself facing heavyweight challengers.

With Circle and Coinbase so closely intertwined, do you think COIN still justifies its premium — or is CRCL the better play going forward?

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