Home / Business and Economy / William Blair Sees Crypto Bottom, Rates Coinbase 'Outperform'
William Blair Sees Crypto Bottom, Rates Coinbase 'Outperform'
21 Jul
Summary
- William Blair cut Coinbase revenue estimates but maintained an outperform rating.
- Coinbase stock has fallen significantly since its peak in July 2025.
- Firm believes the crypto market may be nearing its bottom.
William Blair recently reduced its financial projections for Coinbase, the leading U.S. cryptocurrency exchange. The firm lowered 2026 and 2027 revenue estimates by 12% and 13% respectively, and decreased EBITDA forecasts by 34% for both years. They anticipate a significant drop in Coinbase's trading volume, falling 44% to $669 billion in 2026.
These downward revisions align with the broader crypto market's bear phase, which has impacted Coinbase's performance. The exchange reported a 31% year-over-year revenue decrease in Q1 2026, alongside a net loss of $394 million, contrasting with a profit in Q1 2025. Transaction fees, a primary revenue source for Coinbase, are typically lower during market downturns.
Despite these challenges, William Blair maintains a bullish stance, believing the crypto bear market is approaching its trough. They project a trading volume rebound of 32% in 2027, citing factors like Bitcoin ETFs and institutional adoption as potential catalysts for recovery.
Furthermore, Coinbase is diversifying its revenue streams beyond trading fees. New offerings include tokenized real-world assets, prediction markets, and retail derivatives, which could enhance its long-term resilience. This diversification may position Coinbase more favorably for a market upswing.
