Wall Street Pivots: BofA, Goldman Upgrade Coinbase on ‘Everything Exchange’ Ambitions
Bank of America and Goldman Sachs upgrade Coinbase to Buy, citing its pivot to 24/5 stock trading and a 40% revenue shift toward services.
Wall Street’s holdouts are capitulating. Bank of America and Goldman Sachs both upgraded Coinbase (COIN) to a “Buy” rating this week, signaling a definitive institutional shift away from viewing the company as a mere crypto casino. The stock reacted immediately, surging nearly 17% over five days to trade at $247.54.
The catalyst isn’t Bitcoin’s price action. It’s infrastructure. BofA analyst Craig Siegenthaler slapped a $340 price target on the stock, implying 38% upside, while Goldman’s James Yaro raised his target to $303. Both banks cited the same driver: Coinbase’s successful pivot to a diversified financial services platform.
The ‘Everything Exchange’ Thesis
The upgrades validate CEO Brian Armstrong’s strategy to dissolve the barrier between crypto and traditional finance. Following the December 17 launch of 24/5 stock and ETF trading for U.S. users, analysts now view the platform as a direct competitor to traditional brokerages.
Key discrepancies driving the re-rate:
- Revenue Quality: Subscription and services revenue (custody, staking, stablecoins) now accounts for roughly 40% of total revenue, dampening the volatility of retail trading fees.
- Market Structure: BofA highlighted the “Everything Exchange” roadmap, which includes the integration of equities perpetuals and prediction markets via Kalshi.
“The expansion brings Coinbase closer to realizing its vision of becoming the ‘everything exchange’… [offering] cross-selling opportunities to its sizable client base.”, Craig Siegenthaler, Bank of America
The Base Factor
Beyond equities, institutional attention is shifting to Base, Coinbase’s Layer-2 network. BofA explicitly noted that a potential native token launch for the L2 could “raise billions in cash” and incentivize ecosystem retention. While Coinbase has not confirmed a token, the bank views the network as a critical infrastructure moat that competitors lack.
Goldman Sachs echoed the sentiment, noting that the platform’s regulatory moat and custody dominance make it the primary beneficiary of ongoing structural adoption. The dual upgrades mark a rare consensus: the “crypto winter” discount is over.
