Share this article
Coinbase Shares Are 'Uninvestable' in the Near Term: Berenberg
The investment bank cut its price target on the stock to $39 from $55.
Updated Jun 8, 2023, 3:50 p.m. Published Jun 8, 2023, 2:57 p.m.
Coinbase (COIN) shares are "uninvestable" in the near term, investment bank Berenberg said in a research report Thursday.
The company was already expected to report weak second-quarter 2023 trading volumes before the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the crypto exchange on Tuesday, the report said.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
This weakness may now persist and intensify “due to the overhang that the lawsuit has created,” analyst Mark Palmer wrote. "The upshot is that we view COIN shares as uninvestable in the near term."
The bank maintained its hold rating on the stock, and slashed its price target to $39 from $55. Coinbase shares were trading 2.4% higher at $54.47 at time of publication.
“Given the potentially significant impact of the lawsuit’s outcome on Coinbase’s U.S. operations, we would expect some investors to reduce their exposure to its platform,” the note said.
Berenberg says that more uncertainty was created by a task force of 10 U.S. states that alleges the exchange’s staking rewards program violates state securities laws. That only adds to the extent of the negative overhang on the company’s share price, the bank said.
The SEC’s desired remedy would probably require the complete closure of Coinbase’s core business in the U.S., and this will also weigh on the shares, the report added.
Read more: MicroStrategy Shares Offer Better Exposure to Crypto Than Coinbase: Berenberg
UPDATE (June 8, 15:49 UTC): Adds "uninvestable" quote from report in third paragraph.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Ethereum’s P2P Layer Is Improving Just as Institutional ETH Buys Pick Up
Early PeerDAS performance is proof that the Ethereum Foundation can now ship complex networking improvements at scale.
What to know:
- Ethereum co-founder Vitalik Buterin said that the network is addressing its lack of peer-to-peer networking expertise, highlighting the progress of PeerDAS.
- PeerDAS, a prototype for Data Availability Sampling, is crucial for Ethereum's scalability and decentralization through sharding.
- BitMine Immersion Technologies has significantly increased its Ethereum holdings, viewing it as a strategic investment in the network's future scaling capabilities.
Top Stories
