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Coinbase Shares Shrug Off Double Downgrade to Close Higher on Crypto Rally
H.C. Wainwright downgraded the crypto exchange to sell from buy, taking note of slowing spot trading activity and an overdone rally.
Jul 10, 2025, 8:18 p.m.
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What to know:
- H.C. Wainwright downgraded Coinbase stock from buy to sell, warning that its recent rally has outpaced near-term fundamentals.
- Despite the downgrade, Coinbase shares rose over 4% to an all-time high of $389 as bitcoin pushed to a new record above $113,000 on Thursday.
- Most Wall Street analysts remain neutral or bullish on the stock, even while anticipating a weaker second quarter earnings report.
Coinbase (COIN) shares surged more than 4% Thursday, defying a rare double downgrade from investment firm H.C. Wainwright that warned of disappointing second-quarter results.
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Analyst Mike Colonnese cut his rating on the crypto exchange from buy to sell, a sharp reversal in his outlook rooted in concerns over slowing spot trading activity and a rally he sees as overdone.
“While we continue to view Coinbase as a ‘Best of Breed’ crypto exchange and remain positive on the sector, we believe valuation has outstripped near-term fundamentals following the stock’s ~150% rally since its April lows, which we view as overdone,” Colonnese wrote in a client note.
His concerns center on what he expects to be a “meaningful decline” in spot trading volume on centralized exchanges in the second quarter. That slowdown could weigh on Coinbase’s transaction revenue, the firm’s largest income source. He does, however, expect subscription and services revenue — including staking and custody — to come in ahead of expectations.
Colonnese’s bearish call puts the him at odds with most of the sell-side. Among them, Barclays, which also anticipates a weak second quarter report, maintained a neutral rating. And Oppenheimer remains more optimistic with an outperform call on the stock.
COIN shares nevertheless rose nearly 4% on Thursday, helped along by the continuing crypto rally. Bitcoin rose another 2% to a new record high above $113,000.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
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