Coinbase Global received a major vote of confidence from Wall Street this week when Bank of America upgraded the cryptocurrency exchange to a "Buy" rating, maintaining a $340 price target that implies 38% upside from current levels. The upgrade, following similar bullish moves from Goldman Sachs earlier in the week, sent Coinbase shares soaring 17% in a single session—its best day in months.

From Crypto Exchange to 'Everything Exchange'

The upgrade from Bank of America analyst Craig Siegenthaler centers on what he calls Coinbase's transformation into an "everything exchange"—a platform that goes far beyond its origins as a place to buy and sell Bitcoin and Ethereum.

At its December 17 product showcase, Coinbase unveiled plans to expand into stock and ETF trading for the first time, while also launching prediction markets that allow users to bet on real-world events. These moves represent a fundamental expansion of the company's addressable market and position it to compete not just with crypto rivals, but with traditional brokerages like Robinhood and Charles Schwab.

"Just last month at its product showcase, Coinbase detailed its expansion into stock/ETF trading and prediction markets for the first time. This supports its objective of becoming the 'everything exchange' and cross-selling more products to its existing users."

— Craig Siegenthaler, Bank of America Analyst

Why the Upgrade Comes Now

The timing of Bank of America's upgrade is notable. Coinbase shares had fallen approximately 40% from their July 2025 highs near $420, even as the company continued to expand its product lineup and gain regulatory clarity. Siegenthaler characterized the selloff as an opportunity, noting that the stock's decline occurred despite improving fundamentals.

Several factors contributed to the bullish thesis:

  • Base blockchain expansion: Coinbase's Layer 2 blockchain, Base, has emerged as a key growth driver. The network is designed to be decentralized and permissionless, and a potential native token launch could raise billions in cash while incentivizing developers and users
  • Regulatory tailwinds: The Trump administration has positioned itself as crypto-friendly, with expectations of clearer regulatory frameworks that could unlock institutional adoption
  • Cross-selling opportunity: With 100 million verified users, Coinbase has a massive base to introduce new products like stocks, ETFs, and prediction markets
  • Crypto adoption still in 'early innings': Despite crypto's growth, mainstream adoption remains limited, suggesting significant runway for user acquisition

A One-Two Punch From Wall Street

Bank of America's upgrade came just days after Goldman Sachs issued its own buy rating on Coinbase, pushing shares up 8% earlier in the week. The back-to-back endorsements from two of Wall Street's most prestigious banks represent a notable shift in sentiment toward crypto-focused companies.

For years, major financial institutions kept crypto at arm's length, viewing it as speculative and risky. The willingness of BofA and Goldman to now recommend Coinbase as a core holding signals that the industry's maturation has reached a tipping point.

The Numbers Behind the Business

Coinbase's recent financial performance supports the bullish case. In its most recent quarter, the company reported:

  • Revenue: $1.4 billion, up 78% year-over-year
  • Adjusted EBITDA: $449 million, demonstrating sustained profitability
  • Transaction revenue: $573 million from trading fees
  • Subscription and services revenue: $556 million, showing diversification beyond trading

Perhaps most importantly, Coinbase has maintained profitability through the crypto market's volatility—a stark contrast to earlier cycles when the company's fortunes rose and fell dramatically with Bitcoin's price.

Competition and Challenges

The 'everything exchange' strategy puts Coinbase on a collision course with established players. Robinhood, which already offers crypto, stocks, and options trading, has been expanding its product lineup. Traditional brokerages like Fidelity and Schwab have been exploring crypto offerings of their own.

Coinbase's advantages include its crypto-native user base, brand recognition in the digital asset space, and regulatory head start from its early compliance-focused approach. However, competing with brokerages that have decades of experience in traditional securities trading won't be easy.

There's also the matter of crypto market cyclicality. While Bitcoin has held above $90,000 in recent weeks, the cryptocurrency market remains volatile, and any sustained downturn would impact Coinbase's core trading business.

What Investors Should Consider

For investors considering Coinbase, the Bank of America upgrade presents a compelling case but also highlights the risks inherent in the investment:

  • Bull case: Successful execution of the 'everything exchange' strategy could dramatically expand Coinbase's addressable market and reduce its dependence on crypto trading revenue
  • Bear case: The company remains heavily tied to crypto market sentiment, and competition from both crypto-native and traditional finance players is intensifying
  • Valuation: At current prices around $245, Coinbase trades at roughly 35 times forward earnings—a premium that requires continued execution to justify

The Bottom Line

Bank of America's upgrade of Coinbase reflects a broader recognition that the crypto industry has evolved from a speculative niche into a legitimate financial services sector. By expanding beyond crypto trading into stocks, ETFs, and prediction markets, Coinbase is betting that its users want a single platform for all their financial activities.

With two major Wall Street banks now in the bull camp and a crypto-friendly administration in Washington, the setup for Coinbase looks more favorable than it has in years. Whether the company can deliver on its ambitious 'everything exchange' vision will determine if Bank of America's $340 price target proves prescient or optimistic.