To The Moon

$Coinbase Global, Inc.(COIN)$ $SharpLink Gaming(SBET)$

Ethereum (ETH) has surged past the $3,600 mark, reigniting enthusiasm in the cryptocurrency market and fueling speculation that a full-fledged bull market may be underway. With Bitcoin holding above $70,000 and altcoins rallying across the board, investors are once again turning their attention to stocks that offer exposure to the booming digital asset ecosystem.

Two publicly traded names frequently mentioned in the same breath as crypto’s fortunes are Esports Technologies (SBET) and Coinbase Global (COIN). Each offers a unique — and markedly different — way to play the rising tide in digital assets. But as the crypto rally gains steam, which of these stocks stands out as the smarter pick for investors looking to ride the wave?

In this article, we compare the investment cases for SBET and COIN, examine their latest fundamentals and market positioning, and offer a verdict on which stock might deserve a place in a crypto-themed portfolio.

Ethereum’s Resurgence and Its Impact on Crypto Stocks

After a long stretch of range-bound trading, Ethereum’s decisive move above $3,600 has emboldened bulls. Analysts cite growing institutional interest in Ethereum thanks to its smart contract functionality and applications in DeFi and NFTs, as well as anticipation of ETH ETF approvals in the U.S., as key drivers of the rally.

When cryptocurrencies soar, equity investors often look for “picks and shovels” plays — companies that benefit from increased trading activity, user adoption, and digital payment volumes. Coinbase and SBET are two very different examples of such plays, and they reflect how diverse the crypto stock universe has become.

Let’s dive into how these two companies compare.

Coinbase: The Blue Chip of Crypto Trading Platforms

Coinbase Global, Inc. (NASDAQ: COIN) has become synonymous with crypto for public market investors. As the largest U.S.-based crypto exchange, Coinbase boasts more than 100 million verified users and a suite of institutional services that have helped it expand beyond retail trading.

Strengths Driving Coinbase’s Business

Coinbase benefits directly from increased crypto trading activity, as higher prices and volatility tend to drive more transactions on its platform. In its most recent quarter, Coinbase reported revenue of $1.64 billion, a 72% year-over-year increase, and returned to profitability with net income of $1.17 billion, thanks largely to Bitcoin and Ethereum’s resurgence.

Its institutional segment, which provides custody and prime brokerage services to funds and corporates, has grown to account for a significant portion of revenue, making the business less reliant on retail trading fees alone. The company’s early-mover advantage, regulatory compliance, and brand recognition also create a moat that smaller rivals have struggled to match.

Valuation and Risks

At about $250 per share, COIN trades at roughly 30 times forward earnings — a premium valuation that reflects its position as the dominant U.S. exchange. Critics argue that Coinbase’s business remains highly cyclical and vulnerable to sharp downturns in crypto trading volumes during bear markets. Moreover, ongoing regulatory uncertainty in the U.S. remains an overhang for the stock.

Still, for investors seeking direct leverage to a crypto bull market, COIN remains the best-established option among publicly traded names.

SBET: A High-Risk, High-Reward Bet on Esports and Blockchain

Esports Technologies, Inc. (NASDAQ: SBET) is a much smaller, more speculative company than Coinbase. SBET develops and operates online betting platforms with a focus on esports, and it has recently begun to position itself at the intersection of blockchain, gaming, and wagering.

SBET’s Crypto Angle

SBET’s potential upside in a crypto bull market comes from its efforts to integrate blockchain technology into its wagering platforms. Blockchain’s transparency, security, and smart contract capabilities make it attractive for esports betting, and SBET has announced plans to expand its crypto payment options and even explore its own token ecosystem.

SBET currently operates in a handful of regulated markets and is working to grow its customer base in Europe, North America, and Asia. Revenue remains modest — less than $20 million annually — and the company continues to operate at a loss as it invests in growth initiatives.

Valuation and Risks

At just under $2 per share, SBET trades at a market capitalization of about $40 million, making it a micro-cap stock with all the attendant risks. Liquidity is thin, and the company has issued shares to raise capital, diluting existing shareholders. Still, for aggressive investors who believe in the convergence of esports, crypto, and wagering, SBET offers asymmetric upside potential — albeit with much higher risk than COIN.

Is This Political Theater?

It’s worth asking: are the gains in ETH and the ripple effects on crypto-related stocks like COIN and SBET grounded in sustainable trends, or are they partly driven by speculative fervor?

Crypto markets have been particularly sensitive to headlines around U.S. elections, central bank policy, and regulatory developments. Analysts caution that the regulatory environment for crypto exchanges, stablecoins, and DeFi platforms remains unsettled, especially in the U.S., where the SEC and CFTC have yet to provide clear, comprehensive frameworks.

As such, the recent rally could prove fragile if regulators step up enforcement actions or impose new restrictions. Investors should be aware that much of the market’s strength may still be a reflection of sentiment — a kind of political and monetary theater — rather than purely fundamental demand.

Taco Trading Opportunity

For active traders, both COIN and SBET offer potential “taco trades” — sharp, short-term opportunities to capitalize on momentum.

• COIN: If ETH and BTC continue their upward trajectory, COIN could rally further as trading volumes spike and investor enthusiasm builds. Traders looking to ride the momentum might target COIN for a short-term swing trade, though stop-losses are prudent given volatility.

• SBET: The micro-cap nature of SBET means it can see outsized moves on relatively little news flow or volume. Traders seeking high-beta plays in the crypto ecosystem could find SBET appealing, but the thin liquidity means positions need to be managed carefully to avoid getting trapped.

For long-term investors, however, COIN remains the more credible and sustainable story.

Verdict: Which Should You Pick?

Given the different risk/reward profiles of Coinbase and SBET, the answer depends on your investment horizon and risk appetite.

• Long-term, conservative investors: Coinbase (COIN) is the clear choice. Its scale, regulatory positioning, and institutional business give it durability even in down cycles.

• Speculative, high-risk investors: SBET could deliver multi-bagger returns if it successfully executes its blockchain-based esports vision. However, the risk of total capital loss is much higher.

• Balanced portfolio: Some investors may choose to allocate the bulk of their capital to COIN while taking a small, speculative position in SBET to capture potential upside.

Conclusion: Takeaways for Investors

Ethereum’s rally above $3,600 signals renewed strength in the crypto market, and both Coinbase and SBET are positioned to benefit — albeit in very different ways.

✅ COIN: The safer, more established bet for those who believe crypto adoption and trading activity will continue to grow over the long term. Strong institutional relationships and brand recognition add to its appeal.

⚠️ SBET: A highly speculative, high-upside play for those who can tolerate significant risk. Success depends on management’s ability to execute a niche blockchain-esports strategy in a competitive, fast-evolving market.

For most investors, COIN remains the preferred way to gain exposure to the crypto bull market while keeping risk at a manageable level. Aggressive traders and speculators may find SBET’s potential irresistible — but should size their position accordingly and remain cautious.

As always, staying informed about regulatory developments, crypto market fundamentals, and company-specific execution will be key to navigating this exciting — and volatile — space.

Disclaimer: I want to make it clear that I am not a financial advisor, and nothing I say is intended to be a recommendation to buy or sell any financial instrument. Additionally, it's important to remember that there are no guarantees or certainties in trading or investing, and you should never invest money that you can't afford to lose.

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