Coinbase Target Price Raised After ‘Transformative Week’: Benchmark
Coinbase's stock rose over 23% following positive legislative developments, including the acquisition of a Markets in Crypto Assets (MiCA) license and the Senate's passage of the GENIUS Act, which aims to establish federal stablecoin regulations. The share price reached approximately $300, prompting Benchmark to raise its price target for Coinbase from $301 to $421. The MiCA license allows Coinbase to operate across 27 EU countries, with Luxembourg chosen for its European hub. The GENIUS Act could enhance Coinbase's business linked to Circle's USDC stablecoin, which generated $300 million in revenue in Q1, accounting for 15% of total sales. Coinbase earns interest on USDC held on its platform and plans to expand its usage, including as collateral on its derivatives platform. Despite efforts to diversify revenue, transaction fees remain the primary income source, with Q1 transaction revenue falling 19% to $1.26 billion amid economic uncertainties.
