Benchmark initiates Coinbase coverage with a “buy” rating, stock rises
Riot Platforms also announced a credit facility with the crypto exchange
It’s a good day for Coinbase, the largest crypto exchange in the US. Benchmark Equity Research has initiated coverage of the company, assigning a “buy” rating and a $252 price target, an over 25% premium from current prices. In addition, bitcoin miner Riot Platforms announced a $100 million credit facility with Coinbase this morning.
Both Riot and Coinbase are up in early trading Wednesday.
Benchmark analyst Mark Palmer wrote:
“[Coinbase], with a domestic market share of ~66%, has established the industry’s most scaled platform ($404bn in assets and 250+ digital assets available for trading as of YE24) by offering a comprehensive suite of products and services aimed at facilitating the adoption and use of digital assets by both retail and institutional investors.”
Palmer added that “the end of the ‘air pocket’ regarding changes to the regulatory treatment of digital assets in the U.S. that has weighed on crypto and COIN shares is a catalyst that is fast approaching.”
This includes looming stablecoin legislation as well as increased adoption of stablecoins, something that “would particularly benefit COIN, which as the developer of the USDC stablecoin in partnership with Circle (Private), will receive a portion of interest income generated from the USDC reserves.”
Palmer also said Coinbase “is particularly well positioned to benefit from the impact of regulatory clarity.”
Meanwhile, Riot Platforms will use the proceeds from its new credit facility with Coinbase “to pursue key strategic initiatives and for general corporate purposes,” according to a press release.
“Riot has entered into its first bitcoin-backed facility, which provides us with non-dilutive funding at an attractive cost of financing,” Jason Les, CEO of Riot, said in the release.
