Investing

There’s Big News Ahead for this Crypto Stock

Ian Cooper

Published: January 27, 2025 10:14 am

Institutions are bullish on Coinbase Global (NASDAQ:COIN).

Firms just bought $641,000 worth of COIN February 21, 2025 350 calls and $1.1 million worth of the COIN February 21, 2025 320 calls over the last few days.

Key Points About This Article

• Institutions are bullish on Coinbase Global (COIN), picking up a total of $1.74 million worth of February 2025 call options.
• COIN is set to test higher highs as it attempts to move higher with the cryptocurrency boom.
• The US SEC also announced the formation of a new crypto task force dedicated to developing a comprehensive and clear regulatory framework for crypto assets.
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All of which makes perfect sense.

With Bitcoin expected to rally even more, Coinbase stands to do well. We also have to consider that President Trump wants to make the U.S. the “crypto capital of the planet.”

As noted by USA Today, “Trump – who campaigned as the ‘crypto president’ – passed the order on Thursday night. It calls for the creation of a cryptocurrency working group to propose new digital asset regulations and to look into the creation of a national cryptocurrency stockpile. As a result, cryptocurrencies like Bitcoin will likely become more mainstream and possibly used for payment just like credit and debit cards.”

All of which add legitimacy to cryptocurrencies by the federal government.

The US SEC also announced the formation of a new crypto task force dedicated to developing a comprehensive and clear regulatory framework for crypto assets.

Plus, once new regulation is in place and executive orders are executed, we could easily see crypto transactions multiply quickly.  Not only would that be beneficial to cryptocurrencies, but also to companies like Coinbase Global. In addition, according to Coinbase CEO Brian Armstrong, the “floodgates are opening” for digital currencies, as noted by DailyHodl.com.

In short, there’s a lot to like about crypto stocks, such as Coinbase Global.

Coinbase Global Earnings Could Improve Significantly

In its most recent quarter, the company generated $1.2 billion in total revenue and $75 million in net income. The quarter was also its seventh consecutive quarter of positive adjusted EBITDA, which came in at $449 million.

Unfortunately, EPS of 28 cents did miss estimates by 10 cents. Revenue of $1.21 billion, up 79.5% year over year missed by $40 million. All because of low crypto trading volumes, which should now improve significantly with Trump’s crypto push.

The company also authorized a $1 billion share buyback program.

Again, thanks to a massive crypto push by federal agencies, shares of Coinbase could easily push even higher. From its last traded price of $298, we’d like to see COIN initially retest $349.75 a share, which it last saw on December 6.