BTIG Sees Coinbase Institutional Growth Driving Future Gains

BTIG has maintained its 'Buy' rating on Coinbase shares, citing growth in the company's institutional business. The firm hosted a meeting with Brett Tejpaul, Co-CEO of Coinbase Institutional, to discuss the institutional business, which accounts for approximately 20% of revenue.

The revenue from this segment is $1.208 billion over the last twelve months, and it maintains a strong gross profit margin of 85.8%. BTIG stated that the institutional business serves asset managers, banks, retailers, ETF providers, and exchange providers.

Tejpaul described the institutional business as developing through three phases: building a core institutional crypto platform (Phase 1), extending infrastructure into payments and stablecoins (Phase 2), and expanding into tokenized assets and continuous markets over time (Phase 3).