BTIG Sticks with Buy Rating on Coinbase Amid Institutional Growth

Financial services firm BTIG has reaffirmed its 'Buy' rating on Coinbase stock, citing growth in the company's institutional business. The firm hosted a meeting with Brett Tejpaul, Co-CEO of Coinbase Institutional, to discuss the company's progress.

The institutional business accounts for around 20% of revenue, which totals $6.04 billion over the last twelve months. Despite this, the company posted a negative EPS of $3.73 due to high operating expenses. However, BTIG noted that the company maintains a strong gross profit margin of 85.8%.

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